In July, Bitcoin (BTC) continued to maintain its short-term upward price momentum as the inflow of capital into cryptocurrency investment products continued to soar.
In particular, during the month, Bitcoin rose in value by 17%, its highest monthly performance since October 2021, according to a CryptoRank platform. Tweeter August 1st.
The rise, which saw the best monthly performance in 10 months, indicates that BTC is starting a new month on a positive footing after holding its crucial levels.
However, the current price behavior of BTC makes it difficult to anticipate what will happen in the near future, as it appears to be participating in a short-lived bear market bounce.
Although the road to recovery continues, market participants may remain hopeful that the current rebound is a sign of better things to come in August.
Bitcoin price and chart analysis
The month of June 2022 was not favorable for BTC as it recorded a loss of almost 40% compared to its value at the beginning of the month; however, it has since recovered and closed last month with gains of 16.8%.
At the time of writing, Bitcoin is trading at $23,245, a loss of 2.30% on the day, according to data from CoinMarketCap.
Bitcoin’s current market capitalization stands at $444.31 billion, down a slight 5.3% from the $469.16 billion it previously hit on July 30.
What does this mean for the month of August?
When looking at all the factors surrounding the market, the rest of the year could prove to be a mixed bag, not only for the crypto market, but for other financial sectors as well.
The Federal Reserve-induced volatility has swayed the equity market and the commodity market has been rocked lately, especially with the decline in the value of oil for two months now.
However, according to macro-analyst Alex Krueger, the situation with commodities is not so straightforward and could impact the crypto market. In a Tweeter on July 30, he said:
“Yes, it’s a bearish rally…for now. The thing is, if inflation comes down fast enough, which is doable, and the European energy crisis isn’t exacerbated by a harsh winter, which is also doable, this could end up being the start of the bull market. No one knows yet.”
Until new events from the Fed hit the market and influence the future state of things, the current situation will likely remain in limbo.
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