The price of Bitcoin started the weekend—and the new month—in the worst possible way after falling below the $115,000 mark on Friday, August 1. After Donald Trump’s nuclear threat, the price of Bitcoin has fallen below $113,000 and is expected to continue falling.
The recent movements have sparked market-wide conversations Bitcoin reaching the top of the cycle already. The consensus is that BTC’s price could still go up at least one more leg before reaching the cycle top.
BTC may return to its former highs within the next few months: analyst
The aforementioned is a Quicktake post Amr Taha, an on-chain expert on the CryptoQuant Platform, argued in favor of a rising Bitcoin price following the recent changes to the Bitcoin market as well as the macroeconomic dynamics. Crypto pundit Amr Taha highlighted Binance’s changes in spot volumes for BTC, which is the biggest cryptocurrency exchange based on trading volume.
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Binance’s daily BTC volume was over $7,6 billion according to CryptoQuant data. This is the largest increase in recent weeks. The spike in trade activity also coincided with the price of Bitcoin dropping from $118,000 up to $113,000 – a sign that traders are repositioning themselves.
Taha noted that, from a historical perspective, spot volume spikes of this magnitude—like the $7 billion surge seen on June 22—have often been correlated with local bottoms or major price reversals. The latest increase in Bitcoin spot volume may represent renewed investor demand Ultimately, you should be bullish on the market leader.
Taha noted that, in the macroeconomic context of the US Federal Reserve, the net liquidity also saw a substantial increase Friday. It jumped from $6 trillion up to $6,17 trillion. Net liquidity, in general, is considered to be a major macro-driver for risky assets such as Bitcoin.
A net liquidity surge means that more money in fiat currency is flowing into the financial system. This can be used to invest in equities and other high-risk assets. In the past, an increase in Fed net liquidity has coincided historically with bullish market shifts, as was seen late 2023 to early 2024.
Taha’s conclusion was that the Fed’s net liquidity and Binance’s rise in Bitcoin volume could be the key to setting the market. stage for bullish continuation The flagship cryptocurrency is the XLM.
Bitcoin Price at a Glance
BTC’s price is around $112 600 as of the time of writing. That represents an overall decline of 1% over the last 24 hour.
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Featured image is from iStock. Chart from TradingView
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Source: www.newsbtc.com
