Bitcoin Price Analysis: BTC Starts Week In The Red, Briefly Dips Below $115,000
Bitcoin (BTC) has started the week in bearish territory as bearish sentiment continues to dominate the market. The flagship cryptocurrency is down nearly 2%, trading around $115,525 after dipping to a low of $114,703.
Markets have reversed sharply from the previous week’s record highs as investor sentiment soured, as expectations of a rate cut faded, and geopolitical tensions returned.
Bitcoin (BTC) At $1 Million Could Spell Trouble For The Economy
Galaxy Digital CEO Mike Novogratz has said that if Bitcoin (BTC) reaches $1M next year, it could indicate that the US economy is in trouble. Novogratz stated that he would rather have a lower BTC price in a more stable US, adding that the devaluation of a national currency often comes at the expense of civil society. Novogratz stated on the Coin Stories podcast on Wednesday,
“People who cheer for the million-dollar Bitcoin price next year, I was like, Guys, it only gets there if we’re in such a shitty place domestically. I’d rather have a lower Bitcoin price in a more stable United States than the opposite. When a national currency falls, investors often seek alternative safe havens to protect their wealth, and Bitcoin is often called digital gold.”
Strategy Adds 430 Bitcoin (BTC) Worth $51.4 Million
Michael Saylor’s Strategy has completed its latest purchase, acquiring 430 BTC worth $51.4 million for the week ending Sunday, according to a filing with the United States Securities and Exchange Commission (SEC). The purchase was made at an average cost of $119,666 per coin, indicating substantial volatility last week. The flagship cryptocurrency traded around $120,000 on Monday and dropped to a low of $115,000 on Sunday. The latest acquisition takes Strategy’s Bitcoin holdings to 629,376 BTC, purchased for $46 billion, at an average cost of $73,320 per coin.
Saylor called Bitcoin’s volatility a “gift to the faithful,” and reported that Strategy’s holdings closed at an all-time high of $77 billion. Strategy’s latest purchase came after another small buy of 155 BTC last week, indicating a substantial drop from large purchases in previous months. The company had purchased over 31,466 BTC across three purchases from July 14 to August 3. Strategy’s latest acquisition was significantly smaller than Metaplanet’s latest acquisition. The Japanese investment firm purchased 775 BTC at an average price of $120,006 per coin.
US Bitcoin Holdings Top $24 Billion
The US is one of the world’s biggest Bitcoin (BTC) holders, with its portfolio exceeding $24 billion. However, the US may not add to its stash after Treasury Secretary Scott Bessent ruled out additional purchases. Bessent stated that the Trump administration had no plans to buy additional Bitcoin beyond its current reserve. However, Bessent added that the government was exploring budget-neutral ways to add to the reserve, primarily through Bitcoin seized in criminal cases. According to Bessent, auctions, seizures, and non-traditional acquisitions could be used to increase holdings in the future.
According to data from Arkham Intelligence, the US government currently holds around 198,022 BTC, valued at around $23.42 billion at current prices. However, its portfolio extends beyond Bitcoin, with holdings of 59,951 ETH, worth $273 million, 347 million USDT, and smaller allocations across smaller assets, including 750 WBTC, 40,293 BNB, 5,205 WETH, and 13.6 million BUSD.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has registered a sharp drop during the ongoing session, falling to a low of $114,703 before moving to its current level of $115,670. The flagship cryptocurrency steadied itself above $117,000 over the weekend, registering marginal increases on Saturday and Sunday to settle at $117,488.
Last week, stronger-than-expected US Producer Price Index and import price data dampened expectations of a substantial rate cut in September, according to CME Fedwatch. The Alaska summit between President Donald Trump and Russian President Vladimir Putin also ended without an accord on Ukraine. Investors are also bracing for further geopolitical upheaval, with President Trump scheduled to meet Ukrainian President Volodymyr Zelenskiy and other European leaders in Washington.
With BTC registering a substantial decline, analysts believe a correction was due after BTC spent six weeks in price discovery. According to Rekt Capital, BTC is running out of time to make new highs, and risks staying below $124,000 if historical patterns are in place. The analyst noted that BTC is about to start its 7th week of “price discovery uptrend.” The bull market after halving events contains a series of such uptrends, accompanied by a substantial correction.
“Historically, Bitcoin Price Discovery Uptrend 1 tends to end between Week 6 & 8 of its uptrend. Whereas in Price Discovery Uptrend 2, Bitcoin tends to end its uptrend between Week 5 & 7. Week 7 of Price Discovery Uptrend 2 begins tomorrow.”
BTC started the previous weekend in the red, dropping nearly 1% and settling at $116,683. Sellers retained control on Saturday as the price registered a marginal decline to $116,492. However, it recovered on Sunday, rising 2.42% to cross $119,000 and settle at $119,309. BTC reached an intraday high of $122,319 on Monday as bullish sentiment intensified. Despite the positive start, it lost momentum and settled at $118,701, ultimately dropping 0.51%. The price recovered on Tuesday, rising 1.19% to cross $120,000 and settle at $120,113. Bullish sentiment intensified on Wednesday as BTC rallied, rising nearly 3% to cross $123,000 and settle at $123,365.
Source: TradingView
The flagship cryptocurrency surged to a new all-time high on Thursday, reaching $124,533. However, it lost momentum and plunged below $120,000 to settle at $118,389, ultimately dropping over 4%. Sellers retained control on Friday as the price fell 0.80% to $117,436. BTC stabilized over the weekend, registering marginal increases on Saturday and Sunday to settle at $117,488. The current session sees BTC back in the red, down over 1%, trading around $116,221 after recovering from an intraday low of $114,703.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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