Bitcoin’s price surged past $70,000 following a speech by former US President and current presidential candidate Donald Trump, but it quickly dipped below $65,000 again. Adding to the bearish sentiment, AI algorithms have also been predicting a decline for BTC.
The decline began after the US Department of Justice announced that they had transferred 30,000 BTC, worth $2.02 billion, obtained from the Silk Road incidents. This move came after Trump’s announcement that he would reduce the sentence of Silk Road founder Ross Ulbricht, and the US government also pledged to hold or acquire 100% of their current Bitcoin holdings.
In addition, an AI algorithm used by the crypto analysis platform PricePredictions predicted that BTC’s price could drop to $61,782.51 by August 31, 2024.
Currently, Bitcoin is trading at $64,700, experiencing a 2.36% decline in the last 24 hours despite a 1.13% rise in the past 7 days. However, its price has increased by 3.4% on a monthly basis. The market cap of Bitcoin has also dropped to $1.275 trillion, but its 24-hour trading volume has increased by 28% to over $35.8 billion, leading some investors to consider buying the dip.
Crypto analyst CryptoCon pointed out that historically, bull markets in Bitcoin have coincided with bear markets in gold. Moreover, prominent analyst Ali Martinez revealed that major traders on Binance were buying the dip, with around 70% of them holding long positions in BTC. This suggests that there is widespread confidence in a recovery despite the AI’s bearish predictions.
It’s important to note that the information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
