Bitcoin´s price battles with $20,000 after closing a terrible August
Bitcoin leaves behind a terrible August, where the price of the world's largest digital currency again suffered falls of more than 15%, below the $20,000 mark, and closed with a decline of around 13%, just above this psychological level. Data from the consulting firm Acorn Macro shows that it was the worst performing global asset last month and experts do not believe that September will be any better for the crypto currency.
After gaining 17% in July, Bitcoin reached as high as $25,121 in August, but then suffered a sharp decline to lows around $19,600, its worst exchange rate since the beginning of the seventh month of the year. However, the month's close above $20,000 indicates that "bulls are doing all they can to maintain the price level," according to Naeem Aslam, analyst at Avatrade. As for Ethereum's price action, the expert stated that it "has started to show more bullish signs," as it "has moved above the 50-day simple moving average, which means bulls may be ready to push prices higher."
The digital currencies market is trading lower over the past seven days, with widespread declines for the major tokens, with the exception of MATIC (Polygon), which is the only one rising among the top 15 by market capitalization. Total capitalization sits near, but short of, $1 trillion and globally, investors remain spooked after Federal Reserve (Fed) Chairman Jerome Powell reinforced risk aversion sentiment with his hawkish speech at Jackson Hole last Friday.
Experts warn that equity traders are too complacent and underestimate the risk of a hawkish Fed. Morgan Stanley's Mike Wilson commented that U.S. stock indexes have yet to hit their lows for the year, pointing to more declines for Bitcoin and other cryptos, given their year-long close correlation with the New York Stock Exchange. And veteran investor Jeremy Grantham again described a "superbubble" in the financial markets that has yet to burst, according to 'Bloomberg'.