Bitcoin (BTC) gained over 6% between August 12 to 13, only to reverse these gains after failing to maintain levels above $60,000, falling to as low as $56,000.
Bitcoin (BTC) gained over 6% between August 12 to 13, only to reverse these gains after failing to maintain levels above $60,000, falling to as low as $56,000. It is currently trading at $60,390 after gaining 3% in the past 24 hours. This price movement contrasts with the S&P 500 index futures, which is nearing all-time highs on August 19, and Gold, which recently made a new all-time high on August 16.
Experts point to several factors contributing to Bitcoin's recent weakness. Concerns about a potential recession might drive traders to reduce their crypto exposure, while economic resilience could boost stock performance. However, Goldman Sachs reduced its US recession probability from 25% to 20% after stronger jobless claims and retail sales data. The bank's chief US economist, Jan Hatzius, suggested the Federal Reserve consider a rate cut in September.
Further boosting market confidence was a financial stability agreement between the US Treasury Department and China’s central bank. This cooperation, covering capital markets and monetary policies, eased fears of a potential stock market crash.
In addition to macroeconomic influences, Bitcoin's own metrics have contributed to its dip below $63,000. Spot exchange-traded funds (ETFs) have seen $372 million in outflows over two weeks ending August 16, indicating reduced institutional interest. Historically, inflows into these ETFs have driven Bitcoin price increases by signaling large investments from traditional managers.
Miners' profitability has also come under scrutiny. With substantial Bitcoin reserves, miners may be forced to sell coins to cover high energy costs. Glassnode data shows miners' balances remain at 1.80 million BTC, unchanged from the previous month.
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