The erratic rise and fall of the market value for Bitcoin seem likely to carry on as August looks more and more likely to be another bad month for Crypto investors.
June must have felt like torture to the millions of Bitcoin owners around the globe, as they experienced the worst month of 2022. However, with the July sunshine, there came a renewal of hope that the market may rally after all. Indeed, towards the end of July, the currency managed to break above the $24,000 mark for the first time this year.
Investors were in for another huge disappointment, though, as the value summarily dropped by around 3.6% to $22,958. Although not quite as low as it fell in the earlier part of the year, it was still a big blow for those who were hoping for a turnaround in the currency’s fortunes.
Bitcoin is not the only currency to suffer this sudden drop in market value. Ether fell by a massive 5% after it had enjoyed a huge leap forward, thanks to its 70% growth in July, the largest increase since January.
What Do the Experts Make of All This?
Many investors have now become so confused that they have turned to crypto experts for help. Asked to give his August forecast regarding the market performance of Bitcoin, Antoni Trenchev, co-founder and managing partner at crypto lender Nexo, said this month will likely be a difficult one for digital assets investors.
A “stomach-churning” month is how he described it, which is not something Bitcoin owners want to hear at this point. Surprisingly, though, Trenchev seems to be rather optimistic, as he leans more towards the resilience shown by the markets in July, rather than the meltdown seen in June.
His assessment is based, mostly, on how Bitcoin managed to weather the storm caused by last week’s report by the Federal Reserve Bank, which showed that the US economy was continuing its downward trajectory, with data pointing towards a second consecutive shrinking of the economy. Such news could have been enough to send the currency plummeting towards lows reminiscent of early 2022, but miraculously, Bitcoin survived.
Other industry experts are not convinced, though. Katie Stockton, co-founder of Fairlead Strategies is one of those who seem to think this recent rally by Bitcoin will not last long. She said Bitcoin, as one of the most volatile assets on the market, is a good gauge of the appetite for risk shown by investors, and that the rally will fade regardless of how it is performing now.
Could Bitcoin Whales Be Propping up the Currency?
Even with all the negativity surrounding the Bitcoin market, some individuals seem unaffected and have carried on with business as usual in terms of trading on the currency’s platforms. In fact, instead of reducing the size of their investments, they have actually increased their stakes in Bitcoin assets.
One unknown investor (or group of investors), has been making headlines since mid-July due to the large Bitcoin purchases he has been making. He first made an appearance on the 15th of July, purchasing 15,499 BTC, worth about $345.9 million at the time.
He wasted no time before buying another 45,499 BTC and 71,879 BTC on the 20th and 21st of July, respectively. In total his current investment amounts to 132,878 BTC, which is worth a staggering $2.909 billion in today’s value.
This adds weight to what some groups in the crypto industry seem to think, specifically that this is the best time to invest in Bitcoin. While the motives and identity of the whale are unknown, what is clear is that the activity of whales has had a significant impact on how Bitcoin has performed over the past month.
If the volatile Bitcoin market does shift positively, these players will surely see a very sharp increase in their profits over a short period. Without knowing which way the wind will blow, though, this is a huge risk.
Apart from the huge purchases by similar whales, the rest of the market has remained largely cautious, and the evidence of this has been the slow rise of the value of Bitcoin.
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