Today is the last day of July that has seen Bitcoin break and maintain the $8,000 price level except for a few minor dips that were quickly reversed. Numerous experts believe that positive signs are pointing to another massive price surge for the top-ranked cryptocurrency as a new month begins.
Bounce Back from ETF Rejection
On July 27, the United States Securities and Exchange Commission (SEC) rejected the BTC ETF application filed by the Winklevoss twins. The rejection came at a time when BTC was enjoying a significant run. Many traders might have feared the worst. After all, such negative news usually buffets cryptocurrency prices.]
As expected, the price plunged below the $8,000, finally bottoming out at $7,300. This price dip occurred within a three-hour period as traders rushed to dump the asset in fear of a likely price crash. During the July rally, some experts identified the possibility of an SEC-approved ETF as one of the drivers of the price increase.
However, twelve hours later, the price of Bitcoin was back up to $8,250. Before the dip, BTC was trading at $8,300. July 28 saw an enormous surge in trading volume which caused the price to rise by more than five percent in less than one hour.
Fundstrat analyst, Tom Lee identified the stability of the market as a positive sign in the evolution of Bitcoin and indeed the cryptocurrency space in general. Commenting on the development, Lee said:
It’s a sign of a positive change in crypto that bitcoin has essentially shrugged off the Winklevoss ETF rejection. If this took place in April-June (more bearish period), the crypto market would have seen a sizable sell-off. In short, affirming why technical are improving.
Multiple Currency Declines Forcing People to Adopt Bitcoin
The trade war between the United States and Japan, economic turmoil in numerous countries, as well as monetary policies in countries like Japan, are having positive effects on Bitcoin. With the uncertainty concerning the fate of many fiat currencies, affluent individuals are flocking to BTC as a way of protecting their wealth. At the moment, Bitcoin is holding steady above $8,000 with a lot of sideways movement.
Do you think another price surge is imminent after this current period of consolidation? What is your end of August price prediction for the top-ranked cryptocurrency? Keep the conversation going in the comment section below.
Image courtesy of Coinmarketcap.com