Bitcoin Continues to Struggle as Market Faces Uncertainty Amid Geopolitical Tensions

Bitcoin (BTC) continued its downward trend into August, with its price falling below $63,000 but quickly recovered to around $64,500 today.

This decline extended to the broader cryptocurrency market, reducing its total value to about $2.29 trillion. In the last 24 hours, over $256 million in crypto derivatives were liquidated, primarily affecting long positions.

Amid rising geopolitical tensions, particularly in the Middle East, there has been a surge in cryptocurrency trading activity. Investors are increasingly turning to digital assets as a safeguard against potential fiat currency devaluation.

Recent reports highlight a $50.64 million inflow into US spot Bitcoin ETFs on Thursday, and MicroStrategy plans to raise $2 billion to expand its Bitcoin holdings.

READ MORE:

How AI and New Targets are Transforming Bitcoin Mining in 2024

Looking ahead, analysis from CryptoQuant data suggests Bitcoin might consolidate before making a significant upward move.

The cryptocurrency has been trapped in a downward trend, with predictions of a potential dip to between $48,000 and $53,000 before a bullish breakout. Expectations of an interest rate cut in the US later this year could further drive positive sentiment in the crypto market.

Alexander Stefanov