With a somewhat disheartening start to the last week of August, the Bitcoin price appears uncertain. This comes after the digital asset experienced significant volatility, failing to surpass $26,000, making it the worst-performing month for Bitcoin in 2023. Notably, September has traditionally not been a good month either, and with the August monthly close just days away, there might be more downtrend in store.
In the past week, macro triggers took a back seat, leaving traders and analysts on their toes for potential surprises that might affect the Bitcoin price. Concerns are growing as the monthly close nears. While uncertainty persists, bull control over the market seems to dwindle, leading to widespread expectations of deteriorating conditions.
The digital asset saw its worst week in August, closing at $25,880 after a multi-day low. This intensified fears of more shorting sessions in the new week. Furthermore, the monthly close was a significant topic for market participants given the aggravating woes after August reported an 11% loss.
The Bitcoin bear market seems to have etched a long-lasting impact on the perception of the digital asset. Comparatively, it is nearing Bitcoin’s longest bear market recorded in history, underscored by year-on-year percentage returns. This bearish perspective hasn’t changed, even with the prospect of the U.S. green-lighting the first Bitcoin spot price ETF, indicating an entrenched market consciousness.
Meanwhile, Bitcoin miners provided a silver lining for crypto enthusiasts, as the Bitcoin hash rate recently hit 400 TH/s. This all-time high was achieved despite the global energy crisis and increased electricity prices. An explosive growth in the hash rate could be observed leading up to the upcoming Bitcoin halving in April 2024.
Bitcoin and other altcoins show little regard for macroeconomic events, as evident in the negligible impact rate changes or data releases from the Federal Reserve had on the market. Events that typically have the potential for major influences seemed to leave barely a mark. However, this could change with the release of the PCE, the Fed’s preferred inflation indicator, scheduled in the coming week.
While there have been concerns, the record hash rate raises hopes of a miners’ bull run leading up to the halving next year. However, the broader market doesn’t tend to react until after such halving events occur. As August starts approaching its close, and with September historically being a weak month, Bitcoin could be in for a bumpy ride.