The biggest thing for crypto recently was Grayscale’s win against the US SEC. Because of this, the price of Bitcoin quickly went up past $27,500, but then it went down to $27,240. This kind of going up and down is normal.
Lots of people are still trading, even after the price went up first. A company that looks at how crypto moves, called Santiment, saw that people kept trading even after the prices went up recently.
People are discussing Bitcoin once more. If the price stays between $27,000 and $28,000, things could become calmer. But if it goes outside this range, things might become less stable. Before the news about Grayscale, there was a big move by some really big Bitcoin holders, who are sometimes called “Whales” and “Sharks.” They collected around $388.3 million worth of Bitcoins. This is pretty interesting.
📊 After the news of #Grayscale's victory over the #SEC quickly lifted #crypto markets, the biggest notable beneficiary actually has turned out to be #BitcoinCash, due to its increased exposure. This phenomenon was similar to what we saw in mid-June when the #ETF news was first pic.twitter.com/HzEEEqZqIt
— Santiment (@santimentfeed) August 29, 2023
Analyst Suggests $30K Could Be the New $12K in Downtrend
Mike McGlone, who knows a lot about finance at Bloomberg, believes that if the price of Bitcoin goes to $30,000, it might start going up a lot. He says something similar happened before when it was $12,000. McGlone thinks that if Bitcoin goes past $30,000, it could mean its value will get better after it went down for a while, like when it was $12,000 back in 2020.
Bitcoin $30,000 May Be New $12,000, With Fed-Tightening Overhang – The inevitable approval of #Bitcoin ETFs in the US is moving closer, but the elephant in the room for all risk assets remains — the #Fed is still tightening despite the tilt toward economic contraction. pic.twitter.com/3i7MwxiZ3i
— Mike McGlone (@mikemcglone11) August 30, 2023
But this time, there’s a difficulty. Big banks and financial companies are making it tough for Bitcoin to rise in value. Also, people are talking about a special method to invest in Bitcoin, kind of like a special fund. But the US Federal Reserve is creating problems.
But what’s causing the fear, uncertainty, and doubt (FUD) in the market?
Lately, the people in charge at the Federal Reserve talked about trying to manage how prices go up. This made some people think they might make interest rates higher, which could change how Bitcoin acts. McGlone looked at how Bitcoin is doing compared to a bunch of big companies in the stock market. He saw that those companies are growing a bit, but Bitcoin is having a harder time.
In the last three months, Bitcoin went down by 10%, while the S&P 500, which is a way to see how the stock market is doing, only went up by 1%. This difference shows that Bitcoin’s bigger fall might be a sign that there could be some problems with the economy soon, like how dark clouds might mean it will rain. It’s kind of like Bitcoin is telling us about possible economic troubles.
In these times, Powell’s promise to lower how much prices go up and how the market reacts are making people worry about whether Bitcoin’s rise will keep going on for a long time.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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