Bitcoin's Decline: Market Concerns Amidst US ETF Decisions and Global Risk Aversion

Bitcoin fell to a two-month low as $1billion of losses occurred over past 24 hours
Elon Musk’s SpaceX reportedly sold all its Bitcoin, after writing down holdings in 2021 and 2022
Bitcoin under pressure as global risk aversion leads to de-risking moment

Bitcoin’s plunge stemmed from nervousness about the looming US Bitcoin ETF decisions and on concerns that China’s property crisis could lead to further downward pressure for risky assets. Now that Bitcoin fell below the key trading range of $28,500 to $30,500, all eyes will be on the $25,000 level.

Bitcoin ETF rulings will start to happen and some traders are nervous that might not go so well. Grayscale might get a ruling next week, but expectations are for more rulings to happen in September. The bullish case for Bitcoin is that positive developments with an US Bitcoin ETF breakthrough could help prices make a run back towards the $30,000 region. Bitcoin’s current downtrend however could get uglier if some of these rulings suggest a US ETF still remains distant or if the bond market selloff continues.

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Bitcoin is once again acting like a risky asset and next week should be critical for Bitcoin. If monetary conditions continue to crush risky assets, Bitcoin selling could target the $21,500 region.

Ed Moya

With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.

Ed Moya

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