Bitcoin’s price initially soared past $70,000 following a speech by former US President and current presidential candidate, Donald Trump. However, the optimism was short-lived as BTC fell below the $65,000 mark once again. Adding to the bearish sentiment, AI algorithms, which have been frequently mentioned lately, also seem to be skeptical about BTC.
The decline in BTC can be attributed to the US Department of Justice’s decision to transfer 30,000 BTC, worth $2.02 billion, obtained from the Silk Road incidents. This move came after Trump’s announcement that he would reduce the sentence of Silk Road founder Ross Ulbricht. Furthermore, the US government has also pledged to hold or acquire 100% of its current Bitcoin holdings.
Meanwhile, an AI algorithm used by the crypto analysis platform PricePredictions has projected a pessimistic outlook for BTC. On August 1st, the algorithm predicted that BTC’s price could drop to $61,782.51 by August 31, 2024.
Currently, Bitcoin is trading at $64,700, experiencing a 2.36% decline in the past 24 hours despite a 1.13% rise in the last 7 days. However, on a monthly basis, BTC’s price has increased by 3.4%.
Despite the recent dip, there is a belief among investors that this presents an opportunity for buying the dip. BTC’s market cap has dropped to $1.275 trillion, while its 24-hour trading volume has surpassed $35.8 billion, indicating potential for a recovery.
Crypto analyst CryptoCon has highlighted an interesting observation, noting that bull markets in Bitcoin have historically coincided with bear markets in gold. This correlation may provide some insight into BTC’s future performance.
In addition, renowned analyst Ali Martinez has revealed that major traders on Binance, the world’s largest exchange, are buying the dip. Approximately 70% of this group holds long positions in BTC, suggesting a widespread confidence in the cryptocurrency’s recovery.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and conduct their own research.
