Bitcoin fell 2.4% to $23,247 on Monday after rising to its highest level since June 13 from last October’s $24,658 on Saturday.
Ethereum’s price also fell over the weekend after the coin’s value surged 70% in July, the cryptocurrency’s most significant surge since January 2021.
Bitcoin fell below $20,000 in late June and early July amid fears of a rate hike by the Federal Reserve amid high inflation and the collapse of a number of market participants including hedge fund Three Arrows Capital.
“August promises to be just as tumultuous for Bitcoin, and further bouts of volatility are guaranteed.” forecasts Antoni Trenchev, co-founder and managing partner of crypto lender Nexo.
At the same time, he suggested that this would be the case in August “July Stability” Instead of “June Surrender” after this “Bitcoin weathered a macro shock or two last week” due to the increase in Federal Reserve System interest rates and reports of the continued contraction in the US economy for the second straight quarter.
Bitcoin’s value is still a long way from the record high it hit last November ($69,000), but it has started to show resilience amid challenging economic conditions and monetary tightening.
“Crypto winter may be over and that is what is needed to get (cash) flows moving again,” Edward Moya, senior market analyst at Oanda, said.