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Bitcoin made a strong comeback in July and recorded its best monthly return so far in 2020. After a rocky month of June (where its price retreated 37%), the popular cryptocurrency rebounded and started August up 19.5%. This marked its best month in terms of gains since October 2021.
The sudden rise of this digital currency left those who bought in about a little over a month ago with a gain of up to 36%. This percentage return favored those who trusted after the annual low of $17,600, which took place last June 17.
While the achievement was celebrated by those who bet on digital currencies, as noted by trader SantinoCripto, the price of bitcoin will enter a “long and boring” phase of lateralization. Indeed, predictions indicate that the price will range between $18,000 and $30,000 for 4 to 5 months.
“Tremendous equality right now in the markets between bulls and bears, the confrontation is at its maximum. This is going to cause a long and boring lateralization phase, 4-5 months, where we will move between 30K and 18K in Bitcoin,” he expressed in a Spanish-language tweet.
The Fed’s effect on bitcoin price
The Federal Reserve started increasing interest rates in March 2022 to control inflation. This restrictive policy impacted Bitcoin’s growth.
It is necessary to remember that this last increase of 0.75 in rates went into effect last Wednesday, July 27. The increase was three times higher than in March and corresponded to market expectations, which contributed to bitcoin’s rebound.
In turn, according to Coinglass data, some $87 million in bitcoin were liquidated on July 29, which showed an increase in demand since June’s low.
Joaquín Núñez es licenciado en comunicación periodística por la Universidad Católica Argentina. Se especializa en el escenario internacional y en la política nacional norteamericana. Confeso hincha de Racing Club de Avellaneda. Contacto: [email protected] // Joaquín Núñez has a degree in journalistic communication from the Universidad Católica Argentina. He specializes in the international scene and national American politics. Confessed fan of Racing Club of Avellaneda. Contact: [email protected]