August to be a defining moment for Bitcoin price?
Since May 2022, after the collapse of Terra (LUNA), the crypto market is not in such good shape with an increase in negative news around the space. Even now, the general sentiment in the crypto market is not positive with the increased price volatility along with declining interest in crypto derivatives.
According to the report, in the month of June, there has been a massive drop in derivatives trading volume in well-known exchanges such as Binance and OKX. Now it is fascinating to know how Bitcoin will see the price movement for August 2022.
August to be for the Bitcoin price?
When record history is considered, the month of August has been quite auspicious for the crypto world. In the last two years, i.e. August 2020 and August 2021, the flagship currency has seen an increase of 2.74% and 13.42% respectively. But when the broader market is considered, the month of August has always seen a fusion of both bulls and bears.
At the time of writing, Bitcoin is trading at $21,945 with a move of 3.64% in the last 24 hours. As news regarding the upcoming FOMC meeting scheduled for July 26 and July 27 swirls around the crypto space, cryptocurrencies, especially Bitcoin, are showing a negative reaction.
It was only last week that the King currency had regained the $24,000 level after struggling with bearish pull for more than two months. When we compare the current Bitcoin price and last week’s, BTC is down more than 1.20%.
For the next month, August 2022, Bitcoin is expected to increase by an average of $33,695. However, the currency development may not go as expected.
Trading volume for crypto derivatives See a drop
On the contrary, although the broader market participants are worried about market reactions ahead of the FOMC report and the rising interest rates, traders and experts predict that there is more to see in the crypto space for the coming weeks.
One of the traders and crypto enthusiasts, Crypto Zombie, is of the opinion that the coming weeks for Bitcoin are critical with the upcoming FOMC meeting and the US GDP report.
The month of June has seen several crypto lending firms go insolvent, due to which the general crypto market was pessimistic. According to CryptoCompare, this resulted in a decrease in derivatives trading volume.
In the month of June alone, crypto derivatives trading volume fell by 7.01%, positioned at $2.75 trillion. This mark was one of the lowest recorded derivatives trading volumes since July 2021.
