3 reasons why Bitcoin (BTC) could collect hard in August

3 reasons why Bitcoin (BTC) could collect hard in August

2 minutes, 28 seconds Read

Tl; Dr.

  • With the American interest rate in September in September jumps to almost 80%, markets can start prices in BullisH Momentum Early – Potential for BTC in August.
  • Some analysts believe that being active “sensation” and “euphoria” still have to introduce phases, which can lead to a renewed price rally.

Big profit this month?

Bitcoin (BTC) rose in July to a record high of more than $ 123,000, but is currently trading far below $ 120,000. And although some have started to doubt important Factors that suggest that the current month can be very cheap.

Let’s start with a view of BTC’s performance in August in the past 11 years. The primary cryptocurrency is only finished four times in the Groene Zone – in 2013, 2017, 2020 and 2021.

BTC monthly returns
BTC Monthly returns, Source: Coinglass

Interesting is that it was always successful to close Augustus with some profits after a half -year year. The latest Halving, which reduced the rewards of the miners for adding new blocks in two, took place in 2024. We still have to see whether the current month will follow the historic trend or W.Hotter we will witness an exception.

We continue with the potential reduction of interest rates in the United States. The latest baneng data report indicated that the economy is weaker than before, which means that the Federal Reserve is more inclined to drop the benchmark. According to Polymarket, the chance of such a movement has risen from 35% to almost 80% in September.

Probability of speed reduction
Probability of speed reduction, Source: Polymarket

Lower rates will make borrowing money cheaper and can encourage investors to make riskier investments, such as those in cryptocurrencies such as BTC. Markets often start to praise in such events before the actual announcement, with enthusiasm and optimism early building.

Finally, we will investigate BTCs MVRV, which compares the market capitalization of the actively with its realized capitalization, so that traders are helped to determine whether it is undervalued or overvalued.

In the past month, the ratio is fluctuated within the healthy reach of 2.2 to 2.4, indicating that there is still potential for further appreciation. Based on Cryptuquant’s analysis, levels above 3.7 are historically tailored to cycles, while values under 1 have been agreed with the Lows Market.

BTC MVRV
BTC MVRV, Source: Cryptquant

Waiting for these phases

Many analysts believe that BTC has much more fuel left to reach new peaks. X User Mags accepted That it is not yet active to enter the zones “tension” and “euphoria” and predicts a rally over $ 200,000. However, this usually marks the end of the bull run and can be followed by a steep correction of up to around $ 100,000.

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