Crypto Week Ahead: Bitcoin Reels Under Increased Sell-Off Pressure

Crypto Week Ahead: Over the past seven days, Bitcoin (BTC) price achieved a high of $62,510.58.

BTC dominance, at the time of writing, stood at 56.28 percent.

Source : Satheesh Sankaran/Pixabay

Crypto Week Ahead: Bitcoin (BTC) and other top crypto coins experienced a tough week as the oldest coin, BTC’s price dipped from a high of $62,500 to $55,700 within a matter of days. The market is seeing increased sell-off pressures and the ongoing geopolitical tensions in Israel and Bangladesh are lending heavily to a gloomy outlook. It will take some good news, or rather Pro-Trump news, from the US presidential election run-up to lead to some much-needed rallies in crypto prices.

Before we proceed further, readers should note that the overall crypto market and coin prices are extremely volatile. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. 

This article is aimed at helping investors stay on top of the current market scenarios and the biggest events that have already taken place as well as some upcoming occurrences that are worth noting. Investors are advised to do their research before taking any call. 

Crypto Prices Over The Past Week

Last Monday (August 5), the overall crypto market cap stood at $1.97 trillion. BTC price stood at around $55,700. ETH price stood at around $2,500.

A week later, the overall market cap rose to $2.05 trillion.

DeFi's total volume stands at $3.04 billion, at 5.12 percent of the total market 24-hour volume. In the case of stablecoins, the overall volume stands at $53.71 billion, at 90.58 percent of the total 24-hour market volume. As per CoinMarketCap, the overall market fear and greed index stood at ‘Neutral’ with 50 points (out of 100).

BTC dominance, at the time of writing, stood at 56.28 percent.

Over the past seven days, Bitcoin achieved a high of $62,510.58 (on August 9) and a low of $50,588.43 (August 5).

Ethereum, on the other hand, saw a high of $2,700.43 (August 11) and a low of $2,241.17 (July August 5).

Crypto Events To Note

The amount of Bitcoin held on centralised exchanges has dropped to its lowest point in nearly six years, according to the latest figures from CryptoQuant. The decline, which began in early June 2022, has continued, bringing reserves down to levels not seen since November 19, 2018.

This steady reduction in Bitcoin reserves suggests that more investors are moving their assets off exchanges, possibly into cold storage, reflecting a growing trend toward long-term holding and increased security.

The dwindling reserves highlight a significant shift in the market dynamics of digital assets, which could have implications for liquidity and price volatility in the cryptocurrency space.

Additionally, Turkey's Capital Markets Board (CMB) has released a comprehensive update concerning crypto asset service providers in the country. The CMB's provisional lists now include 47 companies that are currently operational, alongside three firms that have opted for liquidation.

The updated guidelines mandate that all existing crypto asset service providers must submit applications for necessary permits within a specified timeframe. Companies that choose not to comply with these requirements face mandatory liquidation, with potential legal consequences for those failing to adhere to the regulations. 

This move is part of Turkey's broader efforts to regulate the rapidly growing cryptocurrency sector, ensuring that companies operate within the legal framework established by the government.

Lastly, in a move that has sparked concerns across Venezuela, the state-run internet service provider, CANTV, has reportedly blocked access to Binance, one of the world’s leading cryptocurrency exchanges. This sudden action has affected a large number of Venezuelans who rely on the platform for managing their digital assets and participating in peer-to-peer (P2P) markets.

CANTV, which holds a dominant position in the Venezuelan broadband market, has left many users unable to access their cryptocurrency savings, creating widespread frustration. The P2P markets, often used by Venezuelans to protect their wealth from the country's volatile economy, have also been disrupted.

This development has raised alarms in the local crypto community, with many questioning the motives behind the decision and seeking alternative ways to regain access to their funds. The blockage has highlighted the increasing challenges faced by Venezuelans who turn to cryptocurrencies as a financial lifeline in a country with ongoing economic instability.

What Crypto Traders Are Saying About Current Market Scenario

Mudrex co-founder and CEO Edul Patel told ABP Live, "After last week’s crash, Bitcoin quickly rebounded, even breaching the $62,000 mark, bringing a wave of optimism to the market. However, this doesn’t guarantee a sustained upward momentum from here. In addition to geopolitical tensions, strong on-chain movements are acting as undercurrents in the crypto space. Bitcoin's price currently stands at $58,600 and is likely to retest its support at $54k, which could lead to bleeding in altcoins as well. We can also expect Bitcoin to challenge its resistance at $62,000 again, but beyond that, there may be limited action in the coming week.”

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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.