In the first days of August BTC rose above $ 24,000, the highest level since mid-June, while Ether, the second largest cryptocurrency in the market, jumped 70% in the past month, the highest since January 2021.
Bitcoin had dipped below $ 20,000 in late June and July due to concerns over rate hikes and inflation.as well as internal cryptocurrency issues such as the implosion of the Earth / Moon ecosystem and the hedge fund Three Arrows Capital.
“August promises to be equally shocking for Bitcoin, with higher volatility peaks guaranteed”Antoni Trenchev, co-founder and managing partner of cryptocurrency lender Nexo, told Bloomberg.
Indeed, noting that “it tends to repeat the July resistance to the June surrender”, he elaborated: “Cryptocurrencies and stocks are positively correlated and this has been especially the case with mega caps”.
Jake Gordon of Bespoke Investment Group in a note late last week, citing good results from large-cap tech companies “They probably helped fuel sentiment of risk to push the cryptocurrency higher.”
“The reason we are not yet optimistic about cryptocurrencies is that there are no business models that we are aware of that generate revenue outside of other crypto apps.”He added.
However, he said, “as digital assets become a more mature asset class with the entry of institutional investors, wide adoption and development on the chain, you will eventually see people looking at digital assets from an angle. different”.