Bitcoin’s price has dropped by 13% in August, erasing the gains it made earlier in the year.
The decline in Bitcoin’s price has led some analysts to compare the current market to the pre-bull market cycle of 2015-2017.
Traders with short positions have dominated liquidations in the futures market, negatively affecting Bitcoin’s price.
The lack of consistent trading volume and a downtrend in investor sentiment have contributed to the decline in Bitcoin’s price.
Despite the short-term uncertainty, institutional investors are still pushing for Bitcoin financial instruments, which could spark a bull run.
The SEC’s delay in approving Bitcoin ETFs, including BlackRock’s application, is negatively impacting investor sentiment and price action.
Bitcoin’s market structure has turned bearish, and if the price drops below key levels, the bullish momentum will be erased.
Some investors speculate that BlackRock may be suppressing the Bitcoin price ahead of its ETF launch, but this is likely a conspiracy theory.
Macro events and regulatory actions continue to impact the Bitcoin price, and interest rate hikes may also have an effect.
In the long term, market participants still expect the price of Bitcoin to recover, especially as more financial institutions embrace BTC.