Bitcoin holdings of CEX are down to 2.67 million. This comes after an outflow of 99,308 Bitcoin tokens in the previous month, worth approximately $5.96 billion. Recent CEX holdings have reached their lowest level since November 19, 2018, which is attributed to the collapse of Terra and FTX.
BTC is currently experiencing a downtrend. Analysts speculate that the correction is nearly over, and the token is poised for a rebound. At the time of writing this article, it was trading hands at $58,470.78, down by 4.34% in the last 24 hours. However, BTC has increased by 13.21% and 2.17% in the last 7 days and 30 days, respectively, in the same order.
Spot Bitcoin ETF outflows are evident. The collective figure stands at $89.7 million as of August 9, 2024. Grayscale’s GBTC experienced an outflow of $77 million, while FBTC and BITB followed with figures of $19.8 million and $18.1 million, respectively. While outflows may not have affected the holdings of CEX, it could be the recent crash that the market went through amid recession fears.
The Federal Reserve has hinted that it is considering cutting rates in September this year, further adding that the ongoing political scenario has little to do with their decision. Their aim is still to bring inflation under 2%, but many believe that that is an aggressive target that would hamper industries. Therefore, rate cuts are required to enhance investors’ borrowing power. Analysts have stated that while no one has ruled out the possibility of the mentioned inflation rate, rate cuts could have occurred sooner.
Rate cuts are likely to facilitate the purchase of risky assets, that is, cryptocurrencies, including Bitcoin. Ethereum is next in line, as its Spot ETF is on the floor and available for trading. Market turbulence is evident in reports that describe a recession as inevitable.
Investors are worried about losing money, forcing them to stay out of a risky venture. Additionally, selling off a portion of your cryptocurrency holdings could help you keep some profit or at least a manageable level. Investments made during the lowest dip have yielded profits for BTC holders. This is something that mirrors the emotions of Mt. Gox’s 2014 hack victims. They bought tokens in 2013, and their current value surpasses their initial expectations.
Bitcoin holdings in CEX could again mark upticks if the market shows signs of recovery and the overall economic indicators refute the resurgence of recession in the US.
The next Bitcoin price forecast projects that BTC will reach $81,549 in 30 days, a 39.53% increase from the current value. The next 5 days could see the flagship cryptocurrency reach $69,054 with a surge of 18.16%. The 14-day RSI is 43.63, which indicates a neutral sentiment. The 50-day SMA and 200-day SMA demonstrate that the token is currently underbought.
