HomeNewsBitcoin's Market Tumult: Descends to $25,000 - Will the Price Recover to...

Bitcoin’s Market Tumult: Descends to $25,000 – Will the Price Recover to $30,000 or Sink to $20,000? Explanations and Predicted Timeline

- Advertisement -
  • Bitcoin, in a sudden downturn, dips below $25,000 on Binance.
  • Increased U.S. interest rates and Wall Street’s risk-averse attitude are among the contributing factors.

August’s Crypto Turbulence

After what seemed like a tranquil month, August has transformed into a whirlwind for the cryptocurrency market. On Thursday, Bitcoin (BTC) plummeted about 9%, briefly dropping below the $25,000 mark on Binance, the world’s leading crypto exchange. This drastic shift came as Wall Street exhibited a growing inclination towards risk aversion.

The CoinDesk Bitcoin Index mirrored this trend, recording its lowest in two months. Parallelly, Ether (ETH) experienced an 11% decrease, settling around $1,600.

Influencing Factors: Rising U.S. Interest Rates

- Advertisement -

One cannot overlook the global upswing in interest rates, especially in the U.S., which is shaping this market behavior. The 30-year Treasury bond recently ascended to 4.42%, a peak unseen since 2011. This rise in bond yields doesn’t just affect crypto assets but hampers risk assets at large. As Noelle Acheson, a macro analyst, insightfully noted,

“Higher bond yields undermine the investment appeal of equities as well as non-yielding assets like BTC and gold.”

Lingering Hopes for a Bitcoin ETF

In this bleak environment, some Bitcoin enthusiasts still harbor hopes for the SEC’s potential approval of a spot Bitcoin ETF. However, given the SEC’s unpredictable stance, 2023 may or may not witness any affirmative decisions.

>> Buy Bitcoin quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with BTC now. Visit Website <<

- Advertisement -

Adding to the hope list, there’s a brewing anticipation regarding a possible positive court verdict for Grayscale’s lawsuit against the SEC. This could potentially pave the way for Grayscale Bitcoin Trust’s transformation into an ETF.

Bearish Tendencies Gain Momentum

A recent report from the U.S. Commodity and Futures Trading Commission (CFTC) revealed an increase in bearish bets in the cash-settled bitcoin futures by leveraged funds. As highlighted by Lawrence Lewitinn of The Tie, two-thirds of these bets are short, marking a record since April 2022.

Interestingly, even significant crypto-centric advancements, like PayPal’s launch of a stablecoin and a surge in applications for futures-based ETFs tied to Ether, haven’t bolstered the crypto market. As David Lawant from FalconX puts it, despite these optimistic trends, it’s prudent to remain vigilant about potential impacts from broader macro factors on the crypto space.

Amidst these fluctuations, it’s crucial to recall that Bitcoin has always displayed volatility, particularly after substantial rallies in coins like SHIB. The “dogecoin-killer” recently surged due to optimism surrounding its Shibarium launch. However, it has since pulled back, echoing the uncertainties in the broader crypto landscape.


Best Crypto Exchange for Everyone:

  • Invest in Bitcoin (BTC) and 70+ cryptocurrencies and 3,000+ other assets.
  • 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
  • Copy top-performing traders in real time, automatically.
  • Regulated by financial authorities including FAC and FINRA.

2.8 Million Users

Get Started


- Advertisement -
ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Jane Smith
Jane Smith
As a Bitcoin Journalist, I am dedicated to reporting the latest developments in cryptocurrency, with a particular focus on Bitcoin. Through extensive research and interviews with industry experts, I provide accurate and up-to-date information on the ever-evolving world of cryptocurrencies. My goal is to help readers stay informed and make informed decisions regarding their investments in this rapidly changing field.
- Advertisment -spot_img