On Thursday (August 15), Bitcoin plummeted to below $58,500, as if falling into the abyss! And former US President and Republican presidential candidate Donald Trump's chances of winning the November election have plummeted to only 45%!
At the same time, the camp of Vice President and Democratic presidential candidate Kamala Harris announced that if she wins the election, a bipartisan encryption bill will be passed by the end of this year, and her chances of winning have soared to 53%!
However, what is shocking is that given that the US government wallet actually transferred 10,000 bitcoins to the exchange, this operation instantly triggered panic selling!
The on-chain data revealed a big news! The address that received 10,000 Bitcoins from the US government wallet two weeks ago actually transferred all its reserves to the Coinbase Prime deposit wallet on Wednesday!
What is shocking is that the Bitcoin transferred in this transaction is the cryptocurrency seized from the long-defunct dark web market "Silk Road"!
This huge fortune is equivalent to more than 592 million US dollars and was transferred to the Coinbase Prime hot wallet without reservation!
On April 2, the U.S. government moved 31,800 bitcoins to another wallet, and since then, the huge sum has been allocated to different addresses. It is particularly noteworthy that according to the on-chain data platform Arkham Intelligence, the U.S. government still holds more than $1 billion in bitcoins related to the Silk Road!
At the same time, on-chain analysis provider CryptoQuant released a shocking analysis report, revealing that there is an inextricable correlation between Bitcoin price movements and the fund behavior of the German ETC Group Physical Bitcoin (BTCE). Bitcoin prices tend to soar when reserves increase, and plummet when reserves decrease.
At the critical moment of Bitcoin's decline, the U.S. Consumer Price Index (CPI) inflation data for July was released. The CPI rose by 2.9% year-on-year, lower than expected, hitting the lowest level since 2021. The decline in inflation has greatly increased the possibility of the Federal Reserve cutting interest rates in September. Therefore, some investors are looking forward to the rise in digital asset prices in the coming weeks. After all, the prices of risky assets such as cryptocurrencies usually rise strongly in a lower interest rate environment.
According to CoinTelegraph, U.S. Senate Majority Leader and Democratic Senator Chuck Schumer made a bold statement: If Kamala Harris is elected president, his goal is to pass bipartisan legislation supporting cryptocurrencies by the end of this year.
“We can no longer sit back and do nothing because if we do, we are at great risk of cryptocurrency flowing overseas to countries that don’t have the minimum standards for regulation,” Schumer said during an impassioned speech at a Crypto4Harris town hall meeting.
He has keenly noted the rapid growth of the crypto industry and said that the Harris administration is not necessarily opposed to cryptocurrencies in principle. He also added that if Harris is elected president, his goal is to successfully pass legislation supporting cryptocurrencies in the United States by the end of this year.
“I’m eager to bring members of both parties in the Senate together and create strong momentum so that we can pass sensible legislation that helps America maintain its position as the most innovative country in the world,” he declared. “When it comes to artificial intelligence (AI) or encryption technology, innovation is our North Star.”
In particular, he said lawmakers need to put in place strong guardrails to protect users of the technology, maintain national security, and ensure encryption is not abused by nefarious actors. He added: “Congress has the heavy responsibility of providing common-sense and sensible regulation for cryptocurrencies, and we need your strong support to ensure any proposal is bipartisan.”
He also loudly called on voters and cryptocurrency enthusiasts to pledge their full support for Harris' campaign.
According to data from Polymarket, a large cryptocurrency betting platform, Trump's chances of winning in November were as high as 72%. However, as of Thursday's Asian session, it had fallen to 45%, while Harris successfully surpassed the former with a 53% advantage.
Bitcoin Technical Analysis
NewsBTC claims that the price of Bitcoin failed when it hit the $61,500 resistance zone! After Bitcoin formed a short-term top, it started to plummet, first falling below the $60,500 level, and then breaking through the $60,000 and $59,000 levels in one fell swoop.
Bitcoin retested the $58,000 support area, with the low set at $58,061. The price is currently digesting the decline.
Currently, the price of Bitcoin is trading below $60,000 and below the 100 hourly simple moving average. On the upside, the price might face a strong resistance near $58,800. This level is close to the 23.6% Fibonacci retracement level of the downward move from the $61,438 high to $58,061 low.
The first key resistance level is around $59,500, which is the 50% Fibonacci retracement level of the downward trend from the high of $61,438 to the low of $58,061. If the $59,500 resistance level can be broken strongly, it is very likely to drive the price to soar further in the next few trading days. The next key resistance level may be $60,000.
Furthermore, the main resistance level is as high as $61,500. A successful close above this resistance level is likely to trigger a more aggressive upward trend. In this case, the price may soar all the way and attack the resistance level of $63,500.
However, if Bitcoin fails to break out of the $58,800 resistance zone, then the price is likely to continue falling. An immediate support on the downside is around $58,000.
The first major support level is set at $57,650, while the next support level is currently located near the $56,500 area. If the price falls further, it may fall all the way to the $55,500 support area in the short term, and may even bottom out at $55,000.
Well, that’s all for this issue for now. See you next time! If you like it, please follow us so you don’t get lost!
