Bitcoin Drops To 59,000 US Dollars, Can August Close In Bullish Trend?

Illustration of Bitcoin price reduction (photo: Unsplash)

JAKARTA - Last week, the price of Bitcoin (BTC) was back above $62,000 for the first time since August 1, after Federal Reserve Chairman Jerome Powell delivered a dovish speech.

In the speech, Powell hinted at a possible drop in interest rates in September. He showed confidence that US inflation could return to 2 percent, as well as signal a possible drop in interest rates by the central bank.

Powell's comments seem to immediately push the price of Bitcoin up. Since then, Bitcoin has increased from below US$61,000 (Rp945 million) to around 63,500 US dollars (Rp983 million).

In fact, on Friday, August 23, BTC experienced a 6 percent spike and twice tried to penetrate the level of US$65,000 (Rp1 billion), but failed to continue the increase so that it experienced the last three days. Today even the price of Bitcoin fell again to US$59,000 (Rp914 million).

The Financial Expert of Crypto, Panji Yudha explained that there are indications that the price of Bitcoin may return to the level of $62,000-64,000, supported by profit-taking and market participants awaiting economic data from the US.

Historically, Bitcoin returns in Q3 are much lower than in the other quarters. Over the past decade, ROI averaged in Q1, Q2, and Q4 each reached +56 percent, +27 percent, and +88 percent, while Q3 only recorded +6 percent, "explained Panji.

On the other hand, Bitcoin Spot's ETF recorded a total net inflow of US$506.37 million last week, with the biggest inflow last week occurring on Friday, August 23 reaching US$252 million. Meanwhile, Ethereum Spot's ETF recorded a total net outflow of US$44.54 million last week.