Recent developments in the crypto market have kept investors with bated breath, and August 2023 is shaping up to be an exciting month for Bitcoin (BTC) and other digital assets such as Ripple (XRP), even when it comes to forecasting.
As the market reacts to various news and regulatory updates, Gracy Chen, Managing Director of Bitget, provides insights into potential BTC price movements during this crucial period.
Amid Bitcoin’s crypto forecasting and Ripple’s lawsuit against the SEC, future developments according to Bitget’s managing director
In July, the BTC market was significantly influenced by news about Bitcoin’s long-awaited exchange-traded fund (ETF) and regulatory updates. The month saw BTC reach its highest point at $31,800.
Now, as we enter August, all eyes are on the potential impact of key events that could shape the cryptocurrency’s trajectory.
One of the most significant events in August is the US Securities and Exchange Commission’s (SEC) review of applications to list six spot Bitcoin ETFs.
Among these applications is BlackRock‘s ETF. The review period is set at 45 days, with the possibility of extension up to 240 days. Gracy Chen points out that this review has the potential to provide substantial support to the market in August.
The pending approval of an ETF on Bitcoin has been a driving force for market sentiment, and a positive outcome could trigger a new wave of interest and investment in the BTC.
Regarding cryptocurrency regulation, a recent landmark ruling declared that XRP is not a security, providing much-needed clarity to the XRP community.
This ruling contrasts with the SEC’s previous identification of other cryptocurrencies such as SOL, ADA, MATIC, FIL and others as securities.
Gracy Chen believes that the subsequent development of such news could catalyze the market and have a positive impact on investor sentiment.
Regulatory clarity can often lead to increased investor confidence and market participation.
The consumer price index
On the other hand, the market remains uncertain about the timing of the interest rate hike by the Federal Reserve in September.
The Consumer Price Index (CPI) has returned to 3% since 2021, signaling a potential rate hike. Based on CME data, the probability of a 25 basis point interest rate hike in July is 99.8%.
However, ambiguity over the timing of the September rate cut could cause significant market fluctuations in August, affecting BTC prices.
Investors should closely monitor the progress of these events to assess their potential impact on the cryptocurrency market.
August crypto forecasting on Bitcoin and Ripple
Considering these factors, Gracy Chen offers price forecasting for August.
If BTC stabilizes at $29,000 and with the potential influence of the news, it is possible that it will surge in the range of $33,000 to $36,000.
This bullish scenario depends on positive developments in the Bitcoin ETF and regulatory clarity for other cryptocurrencies.
However, the market is also susceptible to unfavorable expectations regarding interest rates and regulation. In this case, BTC could experience a retracement, seeking support around the $25,000 to $28,000 level.
As with any financial market, unpredictability is an inherent feature of the cryptocurrency landscape.
Market fluctuations are expected to be prevalent during this period, making it essential for investors to remain cautious and informed.
Gracy Chen advises investors to stay abreast of news and regulatory developments that could impact BTC price movements in August.
Conclusions and considerations
In conclusion, August 2023 has significant potential for Bitcoin and the cryptocurrency market in general.
With the SEC’s review of Bitcoin ETF applications, regulatory clarity on XRP, and potential interest rate increases, market sentiment could swing in various directions.
Gracy Chen’s insights provide valuable guidance for investors, but it is important to approach the market with caution and a long-term investment perspective.
Later this month, the cryptocurrency community looks forward to seeing how these events will shape the path of BTC in the coming days and weeks.
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