Experts have named the main reasons for the fall in the price of bitcoin in August 2024, despite the general influx of capital into the exchange-traded fund market.
Bitcoin's price has shown negative dynamics in August, falling by almost 8%. This result is weaker than the performance of stocks and bonds, which rose by about 2% over the same period, according to Bloomberg data as of August 30. Experts attributed this to a decrease in liquidity in the spot market for the main cryptocurrency, despite the general inflow into bitcoin-based exchange-traded funds observed in August.
"Bitcoin spot market volumes remain muted, contributing to sharp price swings," wrote Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors.
Bitcoin's seven-day average turnover (trading volume divided by the token's market value), which Farrell uses to determine liquidity levels, has fallen to 2%, 2.5 times lower than its peak in March 2024.
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