empty
12.08.2022 03:23 PM
Bitcoin loses steam as altcoins continue to climb

Bitcoin remained in a sideways trend early on Friday. At the time of writing, BTC traded at $23,787. The leading cryptocurrency added 1.3% on Thursday and finished the day at $24,200.

This image is no longer relevant

According to CoinMarketCap, Bitcoin hit an intraday low of $23,828 and an intraday high of $24,822 over the past 24 hours.

BTC hit a swing high on August 11 and touched $24,918 – its highest level since June 12. However, Bitcoin reversed course shortly afterwards.

Falling US stock indexes have pushed BTC down. During yesterday's trading session, the S&P 500 decreased by 0.08%, while the NASDAQ Composite declined by 0.58%. The Dow Jones Industrial Average went up by 0.10%.

Since the beginning of 2022, analysts have frequently noted a high level of correlation between the US stock market and crypto assets, amid tense expectations of both the consequences of the geopolitical conflict in Eastern Europe and further actions by the Federal Reserve.

Earlier, analysts at Arcane Research have stated that the correlation of BTC and tech stocks has reached its highest point since July 2020.

Such a tight correlation between crypto and equities, particularly the NASDAQ index, increasingly calls into question the ability of crypto assets to become a hedge against inflation for investors.

Altcoin market

Ethereum, Bitcoin's main competitor in the crypto market, surged upwards on Friday and reached $1,904 at the moment of writing. Over the past day, the altcoin went up by 1.13%.

ETH's upsurge was fuelled by reports by Ethereum developers about a successful transition of the Goerli testnet to the proof-of-stake algorithm. The next step for ETH is the transition of the mainnet, which is scheduled to occur in September.

Earlier, Ethereum's co-founder Vitalik Buterin stated that the network's transition to PoS would boost the popularity of crypto assets for everyday payments by reducing fees to 2 cents. According to the Canadian-Russian programmer, the popularity of crypto payments has fallen after 2018 due to high transaction fees.

Out of the top 10 cryptocurrencies by market capitalization, most currencies advanced on Thursday, except for Polkadot, which lost 2.57%.

The best performing cryptocurrency was Ethereum, which jumped by 14.70%.

According to CoinGecko, the best performing digital currency out of the top-100 was Ethereum Classic (+7.7%), while the worst performing one was Arweave (-7.4%).

Over the past week, the best performing cryptocurrency was Celsius Network (+104.9%). Tenset suffered the biggest losses (-11.2%).

Outlooks by crypto experts

August is often considered to be a rather perilous month for BTC. Over the past 11 years, the asset advanced 5 times and declined 6 times. At the same time, the average increase was 26%, and the decrease was 15%. If Bitcoin rises in August, it could finish August at the $30,000 mark. Otherwise, it could slide down to $20,000 by the end of the month.

Furthermore, current outlooks for the crypto market in August are pessimistic as well. The Taiwan crisis, the tense situation in Serbia, the armed conflict between Russia and Ukraine, and the struggle of central banks worldwide with record high inflation are some of the factors that are putting pressure on crypto assets. Digital currencies face additional pressure from the technical recession in America and the high correlation between BTC and the S&P 500.

Major market players are shifting from crypto to such investments as gold and other precious metals, which is a significant bearish factor for cryptocurrencies. The only event that could significantly boost digital assets in the distant future are the midterm elections in the US, which will happen on November 8.

Due to these factors, the overall outlook for Bitcoin in August is negative. Many experts believe that Bitcoin could break below its previous lows, with a 60-70% plunge being possible. If the main cryptocurrency breaks below the $15,000 mark, the entire cryptocurrency industry will begin to collapse, analysts say. This, in turn, will cause a panic in the market, with major players abandoning digital assets.

Irina Maksimova,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Irina Maksimova
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Stock Boom: Nvidia Crosses $4 Trillion, Bitcoin Not Lagging Behind, Dow and S&P Rising

Indices Rising: Dow Jones Up 0.43%, S&P 500 Up 0.27%, Nasdaq Up 0.09% Nvdia Ends Trading with Historical Valuation, Exceeding $4 Trillion Delta Positive Outlook Stimulates Aviation and Transport Sectors

Thomas Frank 08:37 2025-07-11 UTC+2

Nvidia Makes History: Market Rising, Company Capitalization Breaks $4 Trillion Ceiling

Indices Up: Dow Jones — 0.49%, S&P 500 — 0.61%, Nasdaq — 0.95% Nvidia Is the First Company to Reach $4 Trillion in Market Value AES Jumps on Sale Attempts

Thomas Frank 10:46 2025-07-10 UTC+2

US Market News Digest for July 9

US stock indices closed the session with modest moves: the S&P 500 edged slightly lower, the Nasdaq 100 posted a mild gain, and the Dow Jones slipped into negative territory

Ekaterina Kiseleva 14:03 2025-07-09 UTC+2

Trump Back in Action: 50% Copper Tariff, More Blows to China, EU

Trump Announces 50% Copper Tariff Announces New Tariffs on Semiconductors, Pharmaceuticals President Trump Says Talks with EU, China Are Making Progress Japan, South Korea Work Hard to Minimize Tariff Damage

Thomas Frank 09:49 2025-07-09 UTC+2

US Market News Digest for July 8

The US stock market shows restrained momentum amid uncertainty over Donald Trump's potential return to high tariffs. Although the US president has expressed a willingness to negotiate, market participants

Ekaterina Kiseleva 12:08 2025-07-08 UTC+2

Trade storm over Asia: Japan, Korea face 25% tariff hit

Japan, South Korea face 25% tariffs by Aug. 1 Australian dollar rises as RBA keeps rates on hold The pan-European STOXX 600 index (.STOXX) was unchanged at 543.22

Thomas Frank 10:52 2025-07-08 UTC+2

Canceled deals, fresh letters – marching toward trade chaos? Trader's calendar for June 7-9

Symbolically, it was on July 4, Independence Day, that Donald Trump signed what he himself called the "Big Beautiful Bill," which, according to the White House, will "fulfill campaign promises."

Svetlana Radchenko 14:07 2025-07-07 UTC+2

US Market News Digest for July 7

Donald Trump approved legislation establishing a new federal debt ceiling at $5 trillion and increasing government spending. The document includes tax cuts and enhanced security measures but has sparked controversy

Ekaterina Kiseleva 13:27 2025-07-07 UTC+2

Who

S&P 500, Nikkei Futures Fall on Trade Turmoil U.S. Marks Aug. 1 as Tariff Deadline for Some Countries Oil Prices Fall as OPEC+ Boosts Output Dollar Rebounds from Recent Four-Year

Thomas Frank 10:40 2025-07-07 UTC+2

S&P, Nasdaq, and Dow climb in sync as markets digest jobs data and trade developments

The S&P 500 rose by 0.83%; the Nasdaq gained 1.02%; the Dow advanced by 0.77%. US job growth exceeded expectations in June. Tripadvisor rallied on Starboard Value's report. Synopsys

13:11 2025-07-04 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.