There were significant fluctuations in the cryptocurrency market last month, and as we enter the second month of the third quarter, remarkable developments are at the forefront. These developments are expected to have both positive and negative effects on the markets and the prices of crypto assets.
Bitcoin Price Rising to New Highs
Bitcoin is currently trading 13% below the $73,800 level. However, the strong momentum and positive market sentiment around BTC indicate that Bitcoin may surpass its previous peak soon. At the time of writing, Bitcoin is trading at $64,700 and is showing a breakout in a widening bearish channel. This model predicts that Bitcoin could trigger a 21% rally and surpass all-time highs. Investors hope that Bitcoin will continue its upward move as the financial environment changes. Cryptocurrency's durability and growing institutional interest are among the key factors contributing to its potential to set new records.
Status of Political Tokens
As the excitement of the US elections fades, a decline in the values of political tokens is expected, especially after President Biden's withdrawal. It is likely that interest in these tokens will wane and investment in this niche segment will decline. Over the past month, major political tokens like TRUMP, MAGA, and MVP have lost up to 65% in value. As the political environment changes and election enthusiasm wanes, the value and importance of these tokens may decrease. Investors will need to be careful about holding political tokens, as the market's interest in this issue is unlikely to last in the long term.
Altcoin Season Expectation
An altcoin season is not expected in August because the overall market is still in a downward trend. Despite occasional rallies, overall market sentiment remains cautious, impacting altcoin performance. Investors may be in for a slower month in terms of altcoin gains.
According to the altcoin season index, the crypto market is currently experiencing a Bitcoin Season. Altcoin season is not expected to start unless 75% of the top 50 tokens (excluding stablecoins) surpass Bitcoin. Therefore, the continued downward trend in the crypto market suggests that major altcoin growth is unlikely in the near term. Until market conditions improve, the focus may generally remain on Bitcoin and other major assets.
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I EXPLAIN IN DETAIL.
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