Bitcoin price loses $24,000 again, no bull run anytime soon
The Bitcoin price had been hovering around $23,000 for over two months. But in the past couple of days, the flagship currency has regained the $24,000 level – a move not seen since May.
At the moment, however, Bitcoin has plunged below $24,000 to trade at $23,965, down 2.04% in the last 24 hours.
Amid growing hopes of a bull run in BTC, on-chain research firm CryptoQuant claims the asset remains under bearish control.
According to reports, for Bitcoin to see any change in the market trend, the trend of the exchange influx needs to change soon. Today, in CryptoQuant’s weekly Bitcoin highlights, it was revealed that although there was an overall crypto market rally on Wednesday, August 10, Bitcoin was trading on a bearish note, possibly after the US CPI prices were released.
The research firm further explained the Exchange Inflow Spent Output value bands that reveal the value of Bitcoin addresses registered on the exchange. This indication is used to understand the greater number of Bitcoin addresses that have entered the exchange soon after the inflation date was announced.
According to the firm’s August 10 survey, the flow of Bitcoins on exchanges from holders of 1k to 10k BTC has seen a massive increase.
CPI effect on Bitcoin price
It was on August 10 that the consumer price index (CPI) data was released showing that inflation has fallen from June’s 9.1% to 8.5% for the month of July. This affected the financial market as cryptos and stocks rallied and Bitcoin and Ethereum saw an uptrend to 60-day highs. Here, Bitcoin ended the day at $25k and Ethereum just above $1900.
Now, market participants are optimistic that as the inflation rate falls, the Federal Reserve will not go ahead with the aforementioned interest rate hikes. The fall in inflation will also moderate the recession that is pushing the world economy towards better days. However, the macroeconomic concern still needs to be clarified.
According to CryptoQuant’s research, Bitcoin needs to shift from spot exchanges like Coinbase to derivatives exchanges to exit the market correction, which will be important to gauge market risk-on attitudes, meaning investors are prepared to invest with leverage or use Bitcoin as security for other activities.
Despite the CryptoQuant data stating that the crypto market, especially Bitcoin, is still under bearish control, many experts and analysts are of the opinion that this will not last long.
