Following an eventful Labor Day weekend, Bitcoin (BTC) prices dipped nearly 1%, tumbling to below $25,700. A week ago, enthusiasts reveled in the crypto’s rise to above $28,000, buoyed by Grayscale’s court victory against the SEC concerning its intention to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
However, the sense of triumph dwindled rapidly with the SEC’s decision to delay other pending Bitcoin ETF applications by firms like BlackRock and Fidelity. As it appears, a sense of uncertainty pervades the market, with Bitcoin dropping to around $25,000, a low not seen since mid-March.
Respected analyst, Will Clemente, calls the current climate one of ‘apathy’. He points to the declining crypto trading volume, lowest since 2020, Google search trends at multi-year lows and record low realized volatility and weekly Bollinger Bands as indicators of the prevailing indifferent attitude.
On a different note, Monday saw Saudi Arabia and Russia announce their decision to extend oil production cuts for another three months. The decision led to a 1% rise in the price of WTI crude oil – reaching $86.74, its highest since November 2022. While oil enthusiasts celebrated, the repercussions might not bode well for Bitcoin. Higher oil prices translate to increased prices at the pump, leading to higher inflation trends and consequently, higher interest rates. This could potentially divert capital from risk assets like Bitcoin.
Keeping an eye on other factors which might influence Bitcoin, the next indicator is expected to be the U.S. inflation reading due on Sept. 13th, with the government’s release of its Consumer Price Index (CPI) report for August.
While Bitcoin seems to be undergoing a slump, Solana‘s SOL token is defying the trend. It’s price has risen by 3.7% over the last 24 hours, following Visa’s announcement of its expanding stablecoin settlement capabilities with Circle’s USDC stablecoin to the Solana blockchain. Harnessing the advantages of global blockchain networks like Solana, Visa aims to enhance cross-border settlement speeds and offer its clients a modernized solution for funds exchange, says Cuy Sheffield, head of crypto at Visa. Despite the pessimistic aura around Bitcoin, compared to the upward trajectory of SOL, there is much to look forward to in the crypto space.
Source: Coindesk
