The price of Bitcoin (BTC) has continued to fall over the past 24 hours after opening August. The flagship currency was down more than 2% in early European trading on Friday, trading at around $63,981.
The same trend was seen in the altcoin sector, pushing the total cryptocurrency market cap to around $2.39 trillion. As a result, over $245 million was liquidated in the cryptocurrency derivatives markets in the past 24 hours, most of which involved long traders.
Bitcoin whale activity remains active
As geopolitical tensions in the Middle East increase, on-chain activity in the cryptocurrency industry continues to increase. In addition, the impending war will significantly devalue fiat currencies over time. As a result, more and more investors are beginning to seek refuge in the cryptocurrency industry to escape the uncertainty of the global economy.
According to the latest market data, the U.S. spot Bitcoin ETF saw a net inflow of approximately $50.64 million on Thursday. Meanwhile, MicroStrategy reiterated its commitment to its Bitcoin strategy, planning to raise $2 billion to purchase more units.
Following the recent crypto crash, data from CryptoQuant suggests that cryptocurrencies could see consolidation in the coming months before a bullish breakout to new all-time highs.
Medium term price forecast
Over the past five months, Bitcoin price has established clear boundaries of macro consolidation. The flagship coin has been caught in a downtrend, which could be considered a bullish sign.
However, technical analysis suggests that Bitcoin’s price could easily drop to between $48,000 and $53,000 in the coming weeks before an inevitable bullish breakout.
The United States is expected to cut interest rates during the general election later this year, which will trigger a new bullish outlook for cryptocurrencies.
