Andrey Poroshin, a financial analyst at Bitbanker, an exchange with a presence in Russia, the UAE, and Kyrgyzstan, stresses that bitcoin will retest $60K lows as excess liquidity is withdrawn to recover $70K later, a price still below the base cost of mining in the U.S.
Key Takeaways
Bitbanker expects Bitcoin to drop to $60K in August due to passive Fed policy before recovering to $70K.BitMEX winding down and waning geopolitical conflict could clear weak hands and prompt a market reversal.September is expected to bring wider price swings as Fed interest rate decisions and crypto bills take focus.Andrey Poroshin presented a new prediction about bitcoin’s price behavior in August.
He stressed that the Federal Reserve’s recent decision to maintain interest rates failed to sway the market in either direction, with inflation still above the target 2% level.
“Bitcoin ends July under the pressure of moderate volatility and the absence of new drivers from macroeconomics. The U.S. Federal Reserve has not given the markets either positive or negative signals, so participants remain cautious,” Poroshin declared.
Nonetheless, he pointed to BitMEX winding down its operations as one of the catalysts for an upcoming price recovery, as the exit of weak hands from the market “traditionally coincides with the formation of reversal zones and a decrease in short—term pressure on the price.”
For the foreseeable future, bitcoin is free from geopolitical shocks, as the escalation of the Iran-U.S. conflict is losing its influence in the crypto market. Similarly, Poroshin does not see moves in August on the passage of the CLARITY Act, keeping the market uncertain about its approval.
Finally, he predicts that September will be a month with wider price action linked to the Fed’s interest rate decisions and to a possible discussion and approval of the CLARITY Act.
