After Bitcoin’s surge beyond $80,000, traders are wondering if the momentum will continue over the coming weeks or if a decline is inevitable. The Federal Reserve chair’s Jackson Hole address and US inflation statistics will both be released in a few days, and analysts predict that the next 72 hours will determine whether the comeback continues toward $87,000 or returns to the mid-$70,000s.
The largest cryptocurrency in the world reached its highest level since mid-May on Tuesday at $81,237.94, but by the evening in the UAE, it had dropped to about $79,276. The US dollar’s decline and Treasury Secretary Scott Bessent’s attempts to relieve pressure on the bond market contributed to a resurgence of purchases in all cryptocurrency markets.
Alice Liu, Head of Research at CoinMarketCap, provided the most thorough explanation of the real motivation behind the change. She pointed out that open interest is only 1.2% of Bitcoin’s market capitalization, which is low by breakout norms, indicating that leveraged positioning was not the primary culprit. Rather, she cited the over $2 billion in inflows into ETFs over the course of six days, as well as an additional $944 million in spot purchases that “walked straight into stale short positions.” According to her, “the shorts were the fuel it burned on the way through $80,000, not the cause of the move.
Also Read:
Gaza Humanitarian Crisis: UNICEF Reports 300 Children Killed in 300 Days
Why the US Launched Retaliatory Strikes on Iran: Causes and Consequences
