Bitcoin could confirm an August bear-market bottom, though rising Treasury yields could force the Fed to raise rates in September, according to 10x Research.
According to 10x Research, Bitcoin may have confirmed a technical bear-market bottom if it closes its monthly trading period above $63,000. The cryptocurrency analysis firm suggests miners selling some of their cryptocurrency and unwinding positions could add to downward pressure on the price. Meanwhile, Fed policy remains a primary driver for Bitcoin’s performance.
Bitcoin was trading at $63,140 when the analysis was prepared, according to 10x Research. According to the report, Base case is for no interest rate hikes from the Fed in September, but there are uncertainties regarding a potential interest rate hike due to rising Treasury yields. Additionally, additional supply could come from Bitcoin treasury companies unwinding positions.
The FED’s response to rising Treasury Yields remains uncertain, with many Investors poised for a possible interest rate hike in September.
Written by Kate Hollinsworth
Economics Desk
