Bitcoin Price Analysis: BTC Struggling To Reclaim $110,000 As Macro Uncertainty Persists
Bitcoin (BTC) is struggling to reclaim the $110,000 level as investor sentiment remains uneasy. Technicals and on-chain data continue to favor sellers, who have overpowered buyers in spot and futures markets despite buyers buying the dip.
The Labor Day holiday and selling by Bitcoin whales have added to market uncertainty, with the flagship cryptocurrency at risk of a drop below $105,000.
El Salvador Takes Measures To Counter Quantum Threat
El Salvador has split its Bitcoin (BTC) holdings, transferring 6,724 BTC across 14 separate wallets. The transfer was done as a security measure to counter the threat of quantum attacks. El Salvador’s Bitcoin Office stated in a post on X,
“El Salvador is moving the funds from a single Bitcoin address into multiple new, unused addresses as part of a strategic initiative to enhance the security and long-term custody of the National Strategic Bitcoin Reserve. By splitting funds into smaller amounts, the impact of a potential quantum attack is minimized.”
Over 6 million BTC could be at risk if quantum computers become powerful enough to crack elliptic curve cryptography (ECC) keys, according to a report by quantum research company, Project Eleven. However, while industry experts praised El Salvador’s proactive measures, they stressed that quantum computing is not an immediate threat.
Indian Court Sentences 14 To Life In Bitcoin Extortion Case
An Indian anti-corruption court has sentenced 14 individuals, including 11 police officers and a former member of the Bhartiya Janata Party (BJP) MLA, to life imprisonment in connection with the kidnapping and extortion of a Surat-based businessman in 2018. The judgment was delivered by Special Judge B.B. Jadav in Ahmedabad. The court found the accused guilty of criminal conspiracy, kidnapping for ransom, illegal detention, and assault.
The case centers around the kidnapping of local businessman Shailesh Bhatt, who had reportedly recovered a portion of his investment from BitConnect developer Dhaval Mavani in the form of Bitcoin (BTC) after the company shut down. Upon hearing this, BJP MLA Nalin Kotadiya and senior police officers orchestrated Bhatt’s kidnapping and held him at a farm near the state capital, Gandhinagar. The kidnapping was led by Amreli crime branch inspector Anant Patel and several other officers. Bhatt filed a complaint with the Union Home Ministry, prompting an investigation and the arrest of the guilty individuals.
Bitcoin (BTC) Whales Turn To Ethereum (ETH)
A Bitcoin OG whale purchased 96,589 ETH after selling 4,000 BTC during a 12-hour buying spree over the weekend. The OG whale, who began rotating capital into ETH in August, continued purchasing over the weekend. On-chain data shows the whale now holds $3.8 billion in ETH. The whale sold 4,000 BTC worth $435 million over the weekend, exchanging it for 96,859 ETH. The trader then deposited another 1,000 BTC into Hyperliquid, a decentralized exchange, potentially for more selling.
Bitcoin holders have been selling their BTC holdings and buying ETH for the first time. Some analysts believe this is a sign of a maturing market and that whales are diversifying into other assets thanks to positive regulatory steps by the US administration.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is up almost 1% during the ongoing session as it attempts to recover lost ground after Friday’s crash. The flagship cryptocurrency lost the crucial $110,000 level on Friday after it plunged nearly 4% to a low of $107,469 before settling at $108,378. Price action was mixed over the weekend as BTC rose 0.41% on Saturday before dropping 0.53% to $108,247. The current session sees the price up 0.80%, trading just above $109,000.
BTC is almost 10% below its all-time high of $124,500. The decline comes as investors prepare for Friday’s August data report. The report is the first major macroeconomic release of September, and could determine whether the Federal Reserve announces interest rate cuts later this month. Analysts believe a 0.25% rate cut is a certainty this month. However, softer payroll data numbers could see interest rates cut by 0.50%. Low interest rates are generally considered bullish for digital assets as they incentivize investors to bet on risk assets.
BTC has traded mostly downwards since last week, dropping 1.30% on Saturday and falling to a low of $110,635 on Sunday before settling at $113,478. Selling pressure persisted on Monday as the price fell almost 3% to $110,127. Despite the overwhelming selling pressure, BTC recovered on Tuesday, rising 1.51% to cross $111,000 and settle at $111,788. The flagship cryptocurrency was back in the red on Wednesday, dropping 0.48% to $111,253.
Source: TradingView
BTC rebounded on Thursday, rising 1.19% to reclaim $112,000 and settle at $112,574. However, selling pressure returned on Friday as the price plunged nearly 4%, slipping below $110,000 and settling at $108,378. Price action was mixed over the weekend as BTC registered a marginal increase on Saturday before dropping 0.53% on Sunday to settle at $108,247. The current session sees BTC up almost 1%, trading around $109,028.
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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