Bitcoin Dips to $58K in Ongoing Lackluster Trading, with Potential for Upside Momentum Next Week
Bitcoin’s price movement remained subdued on Friday, with the cryptocurrency now down by 12% in August. Over the past few weeks, a clear trend has emerged where prices surge during Asian trading hours and decline during U.S. hours. There is anticipation that volatility could make a comeback next week alongside fresh U.S. economic data.
Reflecting the ongoing pattern, Bitcoin (BTC) is once again on a downward trajectory during U.S. trading hours, slipping back to $58,000 before noon on the East Coast. Currently priced at $58,200, Bitcoin has experienced a nearly 4.4% decrease in the last 24 hours, outperforming the broader market gauge CoinDesk 20 Index, which has seen a 5.6% decline. Other cryptocurrencies like Ether (ETH), Chainlink (LINK), and Cardano (ADA) have shown more significant drops compared to Bitcoin, with Solana (SOL) experiencing a 9% decline, marking the worst performance.
With a little over 24 hours left in August, Bitcoin has plummeted over 12% for the month, erasing the gains it made in July. Ether has also seen a decline of 25% in August, reducing its year-to-date increase to just 7%. Similarly, Solana has dropped by 25% in August, despite posting a 31% year-to-date advance.
Observers have noted a recurring theme in Bitcoin’s price action, with Asia driving price increases while the U.S. market sees declines. This phenomenon has been described as “Asia bids, America dumps,” highlighting the disparity in returns during trading hours in these regions.
Despite positive factors such as increased institutional adoption, potential regulatory improvements, and expected Federal Reserve rate cuts, Bitcoin has failed to maintain its value, dropping over 20% from its all-time high of nearly $73,500 five months ago. Looking ahead, the return of the U.S. market after the Labor Day holiday could bring about a change in the current trend, especially with the release of new economic reports that may impact the market outlook.
Key data to watch next week includes the Nonfarm Payrolls Report for August, set to be published on Friday, September 6. A weaker-than-expected report could prompt the Federal Reserve to consider a more substantial rate cut, potentially boosting risk markets, including Bitcoin. Conversely, a strong employment report could lead to a shift in market sentiment regarding monetary policy, indicating that volatility lies ahead for Bitcoin and other assets. Bulls are hopeful for a positive turn of events amidst the uncertain market conditions.
