A great question with an answer. Bitcoin price is hovering around the $58,000 mark as of the time of writing. Although it has dipped below $58,000 several times in the last hour, short lower wicks have formed. For now, BTC has not closed below the key support level. However, it has not returned to a safe zone either. Within the risk markets, crypto still diverges negatively.
Who is Selling Bitcoin?
Germany has sold out, Mt Gox has completed most of its returns, and the US government has paused sales for a while. However, BTC still hasn’t recovered. Nightmare days continue for altcoins. SOL Coin price is hovering around $138 with an 8% drop. Among the largest altcoins by market cap, SOL Coin leads the losses.
There is little time left for the August BTC close, and Bitcoin is making a special effort to close this month negatively. If the monthly close occurs at current levels, August’s return will be -12%. SOL Coin has dropped by 25% this month.
So who is selling Bitcoin (BTC)? Miles Deutscher answered this today. While Asian investors maintain their buying positions, US-based sales continue. These sales were triggered by strong sales in Binance spot pairs when the US was in a buying position after the last $65,000 attempt. During Asian trading hours, Bitcoin’s cumulative return was 5%, while the US saw a negative return.
What happened today? The same thing happened again, and after the US markets opened, even though NVIDIA announced a great earnings report and interest rates are expected to start falling in 19 days, Bitcoin price began to drop sharply.
What Will Happen to Cryptocurrencies?
The Fed will start lowering the interest rates it has kept at the peak for a year after four years and is expected to continue cutting rates to around 3% next year. This situation, which Bitcoin doesn’t seem to care about for now, should normally stimulate appetite in risk markets. The nearest event that could trigger a market recovery is the non-farm payroll data coming on September 6.
If the NFP data comes in abnormally bad, the expectation for a rate cut in September could climb to 50bp after the second major negative employment data. This should lead to an increase in BTC price because the prevailing view is currently a 25bp cut.
