After the price fluctuations in cryptocurrencies last month, August has also started with great uncertainty. Besides, as we enter the second month of the third quarter in cryptocurrencies, significant developments are expected. The new month is thought to impact the market and cryptocurrency prices, with some effects being good and some bad.
Will Bitcoin’s Price Rise?
Bitcoin price saw a pullback after reaching $70,000, raising questions about a new ATH. Despite this, there is still an ATH expectation in the market, currently 16% below the $73,800 region.
Bitcoin is expected to move to a new ATH with a possible interest rate cut from the US and global stabilization.
As of the time of writing, BTC found buyers at $61,700 after yesterday’s drop, still moving within an expanding descending channel that holds the potential for a rise. According to the existing chart formation, a 21% rally is forecasted, making it possible for BTC to surpass the ATH even if it doesn’t rise significantly.
In the future, BTC is expected to reach its ATH with renewed interest from both individual and institutional investors.
Presidential-Themed Meme Coins
The US election brought meme coins featuring candidates. After current President Biden withdrew his candidacy, interest in the US elections decreased, which is expected to impact meme coins.
Throughout the past month, top tokens like TREMP, MAGA, KAMA and others saw declines of up to 65%, worrying investors. It’s also worth noting that MAGA dropped from $17. In this context, investors should be cautious about political tokens for their benefit.
Is an Altcoin Bull Run Starting?
Due to the downward trend brought by uncertainties in the general market and the world, the likelihood of an altcoin bull run in August is considered low. Despite small price movements, the prevailing sentiment in the market still holds uncertainty, significantly impacting altcoin performance.
When examining the altcoin season index, a process showing Bitcoin dominance in the cryptocurrency market is observed. Excluding stablecoins, unless 75% of the top 50 tokens by volume perform better than BTC, it won’t be possible to talk about an altcoin season.
Due to the ongoing process in the market and the continuation of BTC dominance, an altcoin bull run might be further away than anticipated.
