In a pattern repeated over the past few weeks, the price of Bitcoin (BTC) is once again trending lower during US trading hours, with the price falling to $58,000 this morning.
Bitcoin is currently trading at $58,200, down 4.4% in the last 24 hours. Among the other components of the index that have seen the biggest decline from Bitcoin, there are Ethereum (ETH), Chainlink (LINK), and Cardano (ADA). The worst session was for Solana (SOL) which fell by 9%.
Read also:August Dollar Weakens Helps Global Economies
Bitcoin fell more than 12% during the month, reversing what was a strong performance in July. Ethereum is now down 25% in August, paring its year-to-date gains to just 7%. Solana fell 25% in August, but has been up 31% since the start of the year.
Buy in Asia, sell in USA
For those who feel that this poor price performance is familiar, it’s not fanciful. Miles Deutscher wrote Friday morning: ‘Asia buys, America sells.’ According to Deutcher, the cumulative yield of Bitcoin during Asian trading hours over the past two weeks has been more than 5%, while the coin has recorded a negative return during US trading hours.
“As always,” he added minutes ago, as Bitcoin was sold again on the American morning.
Will the trend change soon?
Positive catalysts, such as increased adoption of institutions, the prospect of a friendlier regulatory environment, and upcoming federal rate cuts, have done little to stimulate the price of Bitcoin, which has fallen more than 20% since hitting a high of $73,500 more than five months ago.
At this point, it can be difficult for optimists to imagine what might shake a poor performance. However, it could become exciting when the U.S. returns from the Labor Day holiday next week, as a new wave of economic reporting could change the economic picture.
Next week’s data tops the August Nonfarm Payrolls report to be released on Friday, September 6. July’s jobs report was weak and likely the last straw that forced the Fed to promise a rate cut in September. However, the market currently expects a slight 25 basis point cut in mid-September. But if September’s jobs report comes out weak again, investors could rush to price a 50 basis point cut from the central bank, giving a boost to riskier markets, including Bitcoin.
On the flip side, there could be a strong employment report in September and the subsequent revision of market expectations towards monetary policy. No matter what happens, volatility is probably on the way, and there’s a 50% chance that it’s on the upside. At this point, optimists may happily accept these possibilities.
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any asset, nor is it considered a solicitation, offer, recommendation or proposal for investment. We would like to remind you that each asset is evaluated from multiple perspectives and its risks are high, so any investment decision and the risks associated with it belong to the investor. We also do not provide any investment advisory services.
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