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.

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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

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.