Bitcoin investors remain hopeful for a strong finish to 2024, even as the cryptocurrency traded sideways to close out August.
In a recent discussion on the “Wolf of All Streets” podcast, host Scott Melker and Austin Arnold of Altcoin Daily analyzed Bitcoin’s recent price movements. The conversation highlighted Bitcoin’s resilience, bouncing back from a dip below $50,000 to climb above $60,000, and focused on the cryptocurrency’s potential trajectory in the coming months.
Arnold emphasized the significance of robust fundamentals, particularly the substantial investments flowing into Bitcoin ETFs from major institutions like BlackRock and Fidelity. “These institutions are accumulating Bitcoin for the long run,” Arnold pointed out, stressing their commitment to long-term value over short-term market fluctuations.
He also explained the recent drop to $49,000, attributing it largely to the Japan yen carry trade, which siphoned liquidity from the markets. Despite the downturn, Arnold observed that institutions saw the dip as a buying opportunity, further demonstrating their confidence in Bitcoin’s future prospects.
Looking forward, Arnold expressed optimism, particularly with the upcoming Federal Reserve meeting on the horizon. He speculated that the market might rally ahead of the event, anticipating potential rate cuts. “I think we’ll see a little buy the rumor into that event and then sell the news,” he suggested, noting that larger-than-expected rate cuts could drive prices higher.
Arnold also pointed to Bitcoin’s recent halving and growing institutional demand as key factors likely to drive prices up over time. While he acknowledged the unpredictability of short-term movements, his overall outlook remains bullish.
Bitcoin has gained more than 30% this year, outpacing the S&P 500, which has risen nearly 20% over the same period.
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