Bitcoin and Ethereum experience varied outcomes in July – What can we expect in August?

Bitcoin and Ethereum experienced varied performance in July, with Bitcoin registering modest returns of 3% while Ether saw a decline of over 5%. As the crypto market witnessed two-way volatility, speculators closely monitored events that could influence price action. One significant event was the Federal Reserve’s decision to maintain the benchmark interest rate at the current 23-year high for the eighth consecutive time.

Following the Federal Open Market Committee’s interest rate decision, Bitcoin traded fairly unchanged on the last day of July. The market is now anticipating the first rate cut of the year in September, as hinted by Fed Chair Jerome Powell. The possibility of a rate cut in September depends on strong economic growth figures.

A rate cut could potentially increase liquidity in the market, which would generally benefit cryptocurrencies. Despite the market’s ups and downs in July, Bitcoin managed to secure positive returns, setting the stage for potential new yearly price highs. In contrast, Ethereum faced a decline of 5.88% during the same period, despite positive factors such as the launch of US-based spot Ether ETFs.

Among large-cap altcoins, MANTRA and Helium emerged as the best performers in July, with returns of 44% and 36%, respectively. On the other hand, Fantom, Flare, and Starknet experienced losses of over 30%. Looking ahead to August, there is a persistent theme of bargain hunting, with strategic accumulation by whale and shark investors hinting at a potential breakout to the upside.

Renewed capital inflows into the crypto market further support a bullish sentiment. Stablecoins and CBDCs report an increase in total market capitalization, reaching its highest level since April 2022. From a technical perspective, Bitcoin has been trading within a range of $58,000 to $70,000 for the past five months. Bullish traders are eyeing a breakthrough above $69,600 to target $72,000 and potentially challenge the all-time high from March.

However, bears have been defending the upper boundaries of the consolidation range, hindering attempts to surpass the $70,000 mark. The market awaits a strong catalyst to overcome this resistance. Overall, the crypto market is poised for further developments and potential price movements in the coming months.