Opening the Month with a Price Drop, What is the Potential for Bitcoin in August?

Potential Bitcoin in August (photo: freepic)

JAKARTA - Bitcoin (BTC) closed July with unsatisfactory results. Based on Bitcoin Monthly Returns data, Bitcoin's growth only reached +3.14 percent, although it was quite good when compared to the previous month, which was -6.96 percent.

However, August is expected to bring new hope for crypto investors for the potential for Bitcoin prices to reach their all-time high again.

But unfortunately, starting August, the price of Bitcoin dropped to around 64,200 US dollars (IDR 1.04 billion). According to Tokocrypto trader Fyqieh Fachrur, this price decline was largely influenced by the sentiment of BTC distribution by Mt. Gox and geopolitical conditions in the Middle East.

"This negative sentiment makes investors tend to reduce exposure to high-risk assets such as crypto, including Bitcoin," said Fyqieh in a written statement on Thursday, August 1.

However, despite starting August with a price decline, Fyqieh sees that there is still great potential for Bitcoin to rebound in the future.

According to him, going forward in August, FUD events such as Mt. Gox, the German government, or the sale of BTC seized by the US government are behind us. Thus, public sentiment may turn positive and become more bullish by the end of the coming year.

In addition, macroeconomic sentiment is also expected to improve given Fed Chairman Jerome Powell's comments at the FOMC press conference on Wednesday, July 31, saying that officials are considering a potential interest rate cut in September.

However, he also noted that they would evaluate inflation and upcoming economic data before taking further action.

“Investors and traders will be closely monitoring upcoming economic data, as it will play a key role in the Federal Reserve’s decision-making process,” he explained.

Fyqieh also added, “a September rate cut could have significant impacts on borrowing costs, investment strategies and overall economic momentum.”