Gushiken Yona
Bitcoin (BTC) continues to face headwinds as it attempts to recover from a significant price slump last week. The world’s largest crypto asset by trading volume remains below its previous week’s high, despite an uptick in trading volume.
Bitcoin is trading at $58,445.42 as of 3:57 p.m. ET on Monday, latest data from CoinMarketCap showed. Over the past 24 hours, trading activity surged with volume rising by 28.38% to $27.63 billion.
Bitcoin’s price only saw a marginal change, edging up by 0.06% within the day despite increase in trading. Broader market trend, however, shows a more challenging environment for the cryptocurrency.
Over the past seven days, Bitcoin experienced a notable decline of 7.74%. It dropped by 6.56% over the past 30 days. These figures suggest a period of volatility and uncertainty. Investors are possibly reacting to broader market conditions or specific industry developments.
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Factors For Bitcoin Struggles
Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International, attributed the recent price decline to a combination of factors. “The recent surge in ETF outflows has exerted downward pressure on Bitcoin’s price,” Greco explained.
“Additionally, global economic uncertainty, including concerns about inflation and interest rate hikes, can also impact investor sentiment towards riskier assets like Bitcoin.” Greco further noted that the recent downturn in Bitcoin’s price was accompanied by significant ETF outflows, totaling approximately $277 million for the week.
While there appeared to be a weak correlation between Bitcoin’s price action and ETF flows during the early part of the week, more substantial outflows occurred later in the week when the price remained relatively flat. This suggests that the recent price decline may be more closely tied to on-chain and digital asset exchange activities than to ETF flows.
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Outlook and Potential Catalysts
Despite the negative price movement, trading volumes for Bitcoin spot ETFs remained robust, indicating strong interest and demand for Bitcoin-based financial products. These ETFs recorded about $7.7 billion in cumulative trading volume for the week and approximately $40 billion for the month of August. This level of activity is unusual for July and August, suggesting a surge in interest and demand.
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YONA GUSHIKEN
Yona brings a decade of experience covering gaming, tech, and blockchain news. As one of the few women in crypto journalism, her mission is to demystify complex technical subjects for a wider audience. Her work blends professional insight with engaging narratives, aiming to educate and entertain.
