On August 17th, the cryptocurrency market experienced a day of price decline, pushing the total market capitalization to its lowest level since June 20th. The market saw a 2% decrease in a single day, reaching a total of $1.17 trillion USD.
Several significant events occurred within the industry during this period. Coinbase was granted permission to launch cryptocurrency derivative products, while Ripple continues to resist pressure from regulations. However, despite some positive news, the market continued to witness selling pressure.
Within less than 24 hours, approximately $30 billion USD left the digital asset space, regardless of other optimistic news within the industry.
In general, when taking a broader perspective, the cryptocurrency market has been moving sideways since March 2023.
This situation occurred following a decline in the global stock market, with Asian indices reaching their lowest point in 9 months. Additionally, major US markets like the S&P 500 and Nasdaq 100, particularly technology-focused ones, have also experienced decreases over the past few weeks.
On August 16th, the Federal Reserve (FED) released minutes from their latest meeting. The US Central Bank once again dismissed concerns about economic recession, even though officials still believed that there was a need to increase interest rates.
Bitcoin’s price also underwent fluctuations. On August 17th, Bitcoin decreased by 2%, reaching its lowest point of the day and the lowest in two months at $28,430 USD. However, the price subsequently recovered slightly, trading at around $28,590 USD at the time of writing, the lowest since June 21st.
Opinions regarding the correction of Bitcoin’s price vary. Benjamin Cowen, the founder of ITC, suggested that this correction usually happens in August and September of the year following a halving event. He believes this correction is related to the seasonality of the S&P 500 in the year before an election.
Meanwhile, analysts have differing views on Bitcoin’s weakness, especially as alternative coins like altcoins are facing similar situations. However, there is also an opinion that Bitcoin’s stability comes from traders holding onto their profits and refraining from selling.
Many analysts predict that selling pressure will increase as Bitcoin’s price drops further until it finds support. The situation in the cryptocurrency market continues to be monitored, and diverse forecasts are being discussed.