There is a slight revival in the cryptocurrency market: after a monthly consolidation near the level of $ 20 thousand by the end of July, Bitcoin grew to $25 thousand. Short-term holders (STH), who managed to buy a coin at a low price, increased the total offer to 330 thousand BTC.
As can be seen from the graph, the extremes of the supply of this group often correspond to price highs or lows, which once again confirms the psychological significance of the level of $ 20-25 thousand.
But not only STH took advantage of a small price rise to take profits. A small outflow was demonstrated by cryptocurrency funds, where Bitcoin was the leader among the instruments with a weekly loss of $ 21 million. Some institutional investors are also in no hurry to play for a long time.
Their fears are well-founded, as the macroeconomic situation remains tense. At the same time, in the last phase of growth, Bitcoin broke the correlation with stock markets, demonstrating weakness.
The reason is the ongoing investment crisis in the cryptocurrency market.
So, in August, investors pumped up the CEL token counting on the ability of the largest crypto fund Celcius to get out of the crisis, accelerating the price four times in two weeks.
However, the updated bankruptcy report shows that instead of a $1.2 billion deficit, the hole in the company’s balance sheet reaches $3 billion. This reduces the likelihood of a refund to investors, among whom there are various crypto projects. Mutual crediting will lead to a series of bankruptcies, and new coins will be thrown on the market in order to repay part of the obligations.
This circumstance allows a number of analysts to predict a new wave of Bitcoin decline. So, on August 14, gold apologist Peter Schiff predicted a withdrawal below $ 10 thousand. But do not despair, because in 2019, he also predicted that Bitcoin will never reach $ 50 thousand.
Now a lot depends on the actions of regulators. China has already backed down, as the increased rates have led to a slowdown in the economy. A number of experts predict similar actions by the Fed by the end of this year. Loosening the grip will lead to a return of demand for high-risk assets and the growth of Bitcoin.