Bitcoin

<h3 id="weekly-feature-our-experts-analyzed-the-market-situation-and-told-how-it-may-change-in-the-short-term-for-bitcoin">Weekly feature: our experts analyzed the market situation and told how it may change in the short term for Bitcoin</h3><p>The week from July 31 to August 6 was relatively quiet. The BTC/USDt <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow">pair traded</a> in the range of $28,585 – $30,047. Increased volatility in the market was observed on August 1 and 2. On August 1, the price of Bitcoin fell to $28,585. The market was pressurized by fears of regulatory action by the Securities and Exchange Commission (SEC) regarding the crypto projects Hex, PulseChain and PulseX. The hack of the Curve crypto exchange was also negatively impacted. And as a result of which hackers stole about $50 million. Despite the fall in quotes in the first half of the day, the daily candle closed with growth at $29,705.</p><h3 id="on-august-2-bitcoin-was-recovering-to-30-047-there-are-two-reasons-that-may-have-provided-support-for-buyers">On August 2, Bitcoin was recovering to $30,047. There are two reasons that may have provided support for buyers:</h3><p>The first one is the release of MicroStrategy’s Q2 2023 report. The company made a profit for Q2 and purchased 12,333 BTC. As of July 31, the company owns 152,800 BTC. The total BTC purchase price is $4.53 billion at an average price of $29,672 per 1 BTC.</p><p>Second – Fitch Ratings downgraded the U.S. sovereign credit rating from AAA to AA&#43; due to a growing budget deficit and a buildup of government debt. The downgrade had a limited impact on the markets. And since with such debt it is an expected event. U.S. government debt service has nearly reached $1 trillion a year. At this rate, debt interest payments will soon become a major spending item in the U.S. budget. Hardly anyone will repay the debt. The share of the dollar is declining in international settlements and in central bank reserves. No matter what anyone says, U.S. bonds are becoming toxic.</p><h3 id="analysis-of-other-factors">Analysis of other factors</h3><p>Friday’s U.S. labor market data points to a continued slowdown in job growth. 187,000 jobs were created in July. And that is below forecasts. And the figures for June were revised downward to 185k. That’s the smallest job gain since December 2020.</p><p>Although the unemployment rate has fallen. And wages have risen, the low rate of job growth suggests the labor market is gradually cooling under the influence of the Fed’s tighter monetary policy and a slowing economy. Companies are cutting back on hiring because of rising costs and an uncertain outlook.</p><p>Overall, the data points to weakening employee attitudes and cooling labor demand. This could have a dampening effect on inflation and cause the Fed to slow the pace of rate hikes. Nevertheless, the labor market remains relatively resilient despite the slowdown.</p><p>Despite a relatively quiet week in terms of economic events, the key indicator will be the U.S. Consumer Price Index (CPI), which will be released on August 10. It will give an indication of the inflation rate and could affect the US Dollar’s performance and the Fed’s monetary policy expectations.</p><p>The dollar ended last week on a weak note after a five-day rally. And the question is whether it was a correction of the uptrend or the beginning of its reversal. Overall, the US inflation report will be a key benchmark in the coming week to understand the outlook for the dollar and monetary policy. Bitcoin did not take advantage of the dollar’s weakness, and that’s a bad thing, as its rebound and a decline in U.S. stock indices could bring down the market more.</p><h3 id="buyers-activity-in-the-crypto-market-is-low-due-to-fears-of-a-new-market-crash">Buyers’ activity in the crypto market is low due to fears of a new market crash</h3><p>The U.S. Attorney’s Office is preparing charges against Binance. However, it fears that it may provoke a massive outflow of user funds, as in the case of the bankrupt FTX.</p><p>DOJ officials are rumored to be concerned that filing criminal fraud charges against Binance could cause panic. And mass withdrawals by customers, causing them to lose money and destabilize the entire cryptocurrency market.</p><p>Therefore, prosecutors are considering alternative options to punish Binance, such as fines, deferred prosecution, or a settlement agreement. This would avoid a harsh reaction from investors and negative consequences for the industry. A decision on what charges will ultimately be brought against Binance has not yet been made and is under review by the US Department of Justice.</p><h3 id="prospects">Prospects</h3><p><a href="https://crypto-upvotes.com/about-us/" rel="noopener noreferrer nofollow">Our experts</a> note that despite the local recovery, buyers failed to gain a strong foothold above $30 th. The price Bitcoin stabilized around $28,950, where it traded until the end of the week amid the absence of positive triggers. The key support level is the $28,250 mark. If the trend line from the low of $16,333 does not hold. The risks of falling to $25,250 will increase sharply. According to seasonal cycles, the bearish phase should last until September. BitRiver estimates that Bitcoin needs to break through the resistance at $30,500 for the situation to turn bullish.</p>

What’s going to happen to Bitcoin this week

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