Bitcoin’s price has dropped 13% in August, erasing the bullish momentum it gained after Grayscale’s court victory against the SEC. This contraction in price has led some analysts to compare the current BTC market to the pre-bull market cycle of 2015-2017. The start of 2023 saw traders with short positions dominating liquidations in the futures market, causing a negative impact on the Bitcoin price. Additionally, the absence of consistent trading volume and a downtrend in investor sentiment have contributed to the current uncertainty in the crypto market. Despite this short-term uncertainty, institutional investors are still pushing for Bitcoin financial instruments, which may spark a bull run. However, the SEC’s continued delay in approving Bitcoin ETFs, including BlackRock’s application, is negatively impacting investor sentiment and price action. Bitcoin’s market structure has turned bearish, with a lack of consolidation above $27,000 and a potential downward surge to $23,000. While some speculate that BlackRock may be suppressing the Bitcoin price ahead of its ETF launch, this argument seems to be a conspiracy. The Bitcoin price continues to be influenced by macroeconomic events and regulatory actions, and further interest rate hikes may also affect its price. However, in the long term, market participants still expect the price of Bitcoin to recover as more financial institutions embrace BTC.
