How Bitcoin (BTC) Price Could Perform in August 2022 Post FOMC?
In line with the general sentiment in the crypto market, activity around crypto derivatives has also fallen drastically recently. Data on derivatives trading from various exchanges show a clear pattern in this direction. In the month of June alone, derivatives trading volume fell significantly, in popular exchanges such as Binance and OKX.
August To Be A Turning Point For Bitcoin Price?
Data on spot trading in the current month has not yet been seen. In the meantime, this raises the key question of what the scenario would look like in August. In the last two years, the month of August has produced a positive return in the form of price improvement during the period. In August 2020 and 2021, Bitcoin rose by 2.74% and 13.42% respectively. Overall, it has been a mixed bag of results for the month, with an equal number of positive and negative returns over the years.
At the time of writing, Bitcoin is trading at $21,968, down 0.21% in the last 24 hours, according to CoinMarketCap. Ahead of the Federal Open Market Committee’s decision on rate hikes, Bitcoin showed negative price action to open the week. Last week, Bitcoin rose to a high of $24,115. In the next month, Bitcoin is said to trade at an average of $33,695, but things could probably go either way from the current level.
Momentum for trading crypto derivatives in exchanges
According to the data provider CryptoCompare, the derivatives trading volume fell drastically in the month of June this year. June was characterized by negative sentiment in the crypto market thanks to the fact that several companies in the credit market were in crisis. This led to the monthly derivatives trading volume lowest number in almost a year.
“Derivatives trading volume fell 7.01% to $2.75 trillion in June. This was the lowest derivatives volume recorded since July 2021.”
In June, spot trading volumes on all centralized crypto exchanges fell by 27.5% to $1.41 trillion. These are the lowest figures recorded since December 2020.
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.
