Bitcoin’s price experienced a significant surge after former US President Donald Trump delivered an optimistic speech, pushing the cryptocurrency’s value past $70,000. However, the positive momentum was short-lived as Bitcoin’s price plummeted below $65,000 shortly afterward. In addition to Trump’s influence, AI algorithms have also projected a bearish trend for Bitcoin’s future.
Why Did Bitcoin’s Price Drop?
According to Arkham’s data, the decline in Bitcoin’s value was triggered by the US Department of Justice’s transfer of 30,000 BTC, worth $2.02 billion, obtained from the Silk Road case. This government action followed Trump’s announcement to potentially reduce the sentence of Silk Road founder Ross Ulbricht. Moreover, the US government has vowed to retain or acquire all Bitcoin it currently holds.
How AI Sees Bitcoin’s Future?
Amid these developments, the AI algorithm from PricePredictions has painted a gloomy picture for Bitcoin. On August 1st, the AI predicted a potential drop to $61,782.51 by August 31, 2024. This forecast has added to the bearish sentiment surrounding Bitcoin.
Key Takeaways
- The US Department of Justice’s BTC transfer impacted market sentiment.
- Trump’s comments on reducing Ulbricht’s sentence influenced Bitcoin’s price.
- AI predictions indicate a potential downturn for Bitcoin by next year.
- Bitcoin’s market cap stands at $1.275 trillion, with a $35.8 billion trading volume.
- Major traders on Binance are buying the dip, showing long-term confidence.
Despite the bearish outlook from AI, some analysts remain optimistic about Bitcoin’s recovery. Notably, Ali Martinez’s analysis highlighted that major traders on Binance are actively buying the dip, with about 70% holding long positions. This suggests a prevalent confidence in the cryptocurrency’s potential bounce-back.
Overall, while AI projections and government actions have created a mixed sentiment in the market, significant activity from traders indicates a belief in Bitcoin’s resilience and possible future uptrend.