Bitcoin (BTC) is showing a strong rebound,
gaining 3.1% to reach $60,865, effectively erasing the 5.0% losses experienced
on Sunday and Monday when the coin dipped to $57,613. This swift recovery
highlights Bitcoin's volatility and potential for rapid gains.
In the U.S. presidential race, Vice President
Kamala Harris is gaining a lead over former President Donald Trump, according
to various polls. Platforms like Polymarket show Harris’s “Yes” shares trading
at $0.52 compared to Trump’s $0.45, and Predictit gives Harris a 59% chance of
winning versus Trump’s 41%. This marks the largest gap favoring Harris since
her nomination.
The cryptocurrency market reacted to political
developments, particularly with Trump’s recent silence on crypto during his
interview with Elon Musk on platform X. In contrast, his son Eric Trump made
headlines with a tweet expressing his enthusiasm for crypto and DeFi, which was
interpreted by some as a potential announcement of his own token. This led to a
brief surge in the "Restore the Republic" (RTR) token on the Solana
blockchain, which gained 120.0% in value before plummeting by 82% after Eric
Trump clarified that neither he nor his father were involved with the token.
Defunct
crypto exchange Mt.Gox showed some more signs of activity on August 13, when a
test transaction was made from the wallet where the exchanged earlier has transferred
33,100 BTC $2 billion worth. This
was seen as progress towards distributing funds to creditors, which could
potentially lead to a sell-off. However, CoinGlass data suggests that BTC
allocations on exchanges have reached record lows, indicating that investors
are currently inclined to hold rather than sell, which is a positive sign for
the market.
Supporting Bitcoin’s recent rise, U.S.
producer prices for July showed a decline to 2.2% YoY from 2.7%, boosting BTC
by 4.4% to $61,540. However, Bitcoin has struggled to break through the
$60,000-62,000 resistance level. The upcoming release of U.S. consumer price
data for July could provide the necessary momentum; if consumer prices slow
down significantly, BTC might have another attempt to climb above $62,000.
Despite this potential, large investors have
been cautious. The largest spot BTC-ETFs (IBIT, FBTC, and GBTC) reported net
outflows of $268.9 million last week, with only minor inflows this
week—insufficient to build strong upward momentum.
August has historically been a challenging
month for crypto assets, and another drop in BTC prices cannot be ruled out.
However, the strong support level at $52,000 is expected to hold, with
September and October anticipated to offer significant opportunities for the
crypto market.