The final weeks of pain are happening on the markets.It was a sea of red in the cryptocurrency market on Aug. 16 as Bitcoin dropped below the key support level of ,000.
TIA, WIF, ENA, and SUI are leading losses
Still, some analysts believe that Bitcoin and other cryptocurrencies will bounce back later this year. In a note, Michael van de Poppe, a popular crypto analyst, predicted that the rebound will start to happen in September.
Bitcoin (BTC) and many altcoins have retreated even as broad market conditions have improved. The US dollar index has dropped to 2, while US equities are on track for their best week in months.
BTC valuations are slowly grinding upwards already.
• Retail interest is evaporating fast (YT views have fallen off a cliff over the past week)
• Apathy amongst existing market participants
• Lack of clear narratives
From September onwards, it’s again the best period of the cycle for #Bitcoin & #Crypto.
Data by CoinGlass shows that total bullish liquidations stood at over 0 million on that day. A likely indication of this is that Bitcoin’s open interest in the futures market has stalled at billion this week. Additionally, the volume of cryptocurrencies traded on major DEX and CEX exchanges has dropped by double digits in the past few days.
Analysts are bullish on crypto
Second, there is no clear catalyst traders can get behind and bears can’t ignore. Earlier this year, the narratives focused on Bitcoin and Ethereum ETFs and the Bitcoin halving event, which have all taken place.
This feels eerily similar to August-October last year.
Additionally, the Federal Reserve is set to join other central banks like the European Central Bank and Bank of England in cutting interest rates. US politicians have also become more bullish on Bitcoin, with Chuck Schumer working on a crypto regulation bill. All these factors could lead to a BTC and altcoin comeback.
Some companies have already started buying Bitcoin. Marathon Digital has pushed its total holdings to over 25,000 while firms like Goldman Sachs and Nomura have acquired spot Bitcoin ETFs.
