Crash

Cryptocurrency

Bitcoin

Notable

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/bitcoin-investors-reevaluate-risk-strategies-after-market-crash/" data-wpel-link="internal">Bitcoin Investors Reevaluate Risk Strategies After Market Crash</a> 
Bitcoin investors are reevaluating their risk strategies after the August 5th <a href="https://en.coin-turk.com/sec-accepts-hashdexs-19b-4-application-for-crypto-etf/" data-wpel-link="internal">cryptocurrency market</a> crash. Bitcoin fell to a six-month low of approximately $49,650 during the global market crash on August 5th. This drop occurred after a sudden recovery that took Bitcoin’s price to a session high of around $72,730 on August 8th. 
<h2 class="p1" style="text-align: justify" id="what-s-happening-with-bitcoin">What’s Happening with Bitcoin?</h2> 
Since then, Bitcoin has remained in the $58,000-$62,000 range, with recovery momentum weakening near the significant psychological resistance of $60,000. This calmer environment reflects the market’s adjustment to a post-liquidation landscape, paving the way for more measured and stable trading activity. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-379510 size-full" src="https://coin-turk.com/wp-content/uploads/2024/08/btcusd-.png" alt="" width="2726" height="1447"> 
Notably, Bitcoin’s sideways trend emerged after over $350 million in long and short positions were liquidated since August 5th. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-379509 size-full" src="https://coin-turk.com/wp-content/uploads/2024/08/coinglass-3.webp" alt="" width="2558" height="754"> 
During this turbulent period, Bitcoin’s annual realized volatility saw a significant increase, reaching its highest levels since March 2023 as of August 9th. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-379508 size-full" src="https://coin-turk.com/wp-content/uploads/2024/08/glassnode-1.webp" alt="" width="1800" height="1013"> 
The liquidation process effectively cleared many leveraged positions, which are often a significant source of increased volatility. As these leveraged positions were reduced, the market experienced fewer extreme price movements, contributing to a more stable environment. As the dust settles, investors are taking the opportunity to reassess their strategies in light of recent volatility. This reassessment has led to more cautious trading behavior, further supporting Bitcoin’s price stability. Consequently, both Bitcoin Futures open interest and volatility have significantly decreased as the market enters a period of sideways price consolidation. 
<img loading="lazy" decoding="async" loading="lazy" class="aligncenter wp-image-379507 size-full" src="https://coin-turk.com/wp-content/uploads/2024/08/oi.webp" alt="" width="2522" height="750"> 
<h2 class="p1" style="text-align: justify" id="notable-details">Notable Details</h2> 
Bitcoin’s stability period is emerging particularly in the days leading up to the release of significant US economic <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener" data-wpel-link="exclude">data</a>, notably the Consumer Price Index (CPI) on August 14th. Inflation data will provide clues about the Federal Reserve’s interest rate path in the coming months. 
<img loading="lazy" decoding="async" loading="lazy" class="aligncenter wp-image-379506" src="https://coin-turk.com/wp-content/uploads/2024/08/kobeissi.webp" alt="" width="500" height="416"> 
A notably lower CPI print could give the Fed room to lower <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">interest rates</a> in September, which could increase the market’s appetite for non-yielding assets like stocks and cryptocurrencies, benefiting Bitcoin. 
<img loading="lazy" decoding="async" loading="lazy" class="aligncenter wp-image-379505 size-full" src="https://coin-turk.com/wp-content/uploads/2024/08/fed.webp" alt="" width="2000" height="1000"> 
The opposite scenario is a higher CPI print and a hawkish Fed response, which could reduce demand for Bitcoin and other risky assets. Cryptocurrency investors are avoiding making big moves or opening new positions until the data provides clearer insights into the economic outlook. This caution particularly reduces trading activity in August, leading to more stable prices. 
<h5>The post first appeared on COINTURK NEWS: <a href="https://en.coin-turk.com/bitcoin-investors-reevaluate-risk-strategies-after-market-crash/" data-wpel-link="internal">Bitcoin Investors Reevaluate Risk Strategies After Market Crash</a></h5>
The post <a href="https://en.coin-turk.com/bitcoin-investors-reevaluate-risk-strategies-after-market-crash/" data-wpel-link="internal">Bitcoin Investors Reevaluate Risk Strategies After Market Crash</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Bitcoin Investors Reevaluate Risk Strategies After Market Crash

Table of Contents

COINTURK NEWS

Other articles published on Aug 13, 2024

Germany’s KfW and BSD Collaborate to Issue Tokenized Bonds

Crypto firm Cumberland deployed $1b Tether in 8 days

Riot Platforms Raises Stake in Bitfarms to 18%, Continues Strategic Accumulation

Crypto Venture Capital Funding Hits $2.7B Despite Declining Deal Activity

Donald Trump Avoids Crypto Talk In Interview With Elon Musk, But One Crypto Bettor Still Made Ove...

Ethereum ICO whale becomes a market factor

Join our free newsletter for daily crypto updates!