Bitcoin’s price surged past $70,000 following a speech by former US President and current presidential candidate Donald Trump, but it quickly dropped below $65,000 again. In addition, AI algorithms, which have been frequently mentioned recently, also seem to have a bearish view on BTC.
According to data from Arkham, BTC started declining again after news broke that the US Department of Justice had transferred 30,000 BTC, worth $2.02 billion, obtained from the Silk Road incidents. This move by the government came after Trump announced in his speech that he would reduce the sentence of Silk Road founder Ross Ulbricht. The US government also pledged to hold or acquire 100% of its current Bitcoin holdings.
Meanwhile, an AI algorithm used by the crypto analysis platform PricePredictions predicted a pessimistic outlook for BTC, suggesting that its price could drop to $61,782.51 by August 31, 2024.
Currently, Bitcoin is trading at $64,700, experiencing a 2.36% decline in the past 24 hours despite a 1.13% increase in the last 7 days. On a monthly basis, BTC’s price has risen by 3.4%. The market cap of Bitcoin dropped to $1.275 trillion, but its 24-hour trading volume increased by 28% to over $35.8 billion, leading some investors to speculate about a potential buying opportunity.
Crypto analyst CryptoCon pointed out that bull markets in Bitcoin have historically coincided with bear markets in gold, emphasizing an important trend to consider. Another prominent analyst, Ali Martinez, revealed that major traders on Binance were buying the dip, with nearly 70% of this group holding long positions in BTC. Martinez’s analysis, shared on August 1st, suggests that there is widespread confidence in a recovery despite the AI’s bearish expectations.
It’s important to note that the information in this article should not be taken as investment advice. Cryptocurrencies are highly volatile and carry significant risk, so investors should conduct their own research.