It was a tumultuous week: what prompted the price drop?

Welcome to the morning summary of Asia Pacific: its essential summary of cryptographic developments during the night that the regional markets and the global feeling configure. Monday’s edition is the conclusion of last week and this week’s forecast, presented by Paul Kim. Take a green tea and look at this space.

Last week, the price of Bitcoin experienced a decrease of approximately 4%. While this is not uncommon for the notoriously volatile cryptocurrency, it is certainly disturbing for investors who had seen their price increase above $ 120,000 only two weeks ago, just to see that it returns to the level of $ 100,000.

The woven ondulation effect

What promoted this sudden recession? A closer look reveals a two -pointed attack on a whale and a hesitant stock market.

The initial trigger for price drop was a single long -term Bitcoin holder. According to the Lookonchain chain analysis platform, this “whale” had more than 100,000 bitcoins.

Last Monday, they began abruptly to sell their participations in exchanges such as hyperlichids and change to Ethereum (ETH). This mass sale lasted more than a day, which caused the price of Bitcoin to submerge from around $ 114,000 to $ 108,600.

Fortunately, once the cause was identified as a unique event, the market stabilized and began to recover. For Thursday night, Bitcoin had returned to $ 113,500, almost his starting point before the fall.

The actions of AIs demolish the largest market

Like Bitcoin, a new unexpected threat arose. The main AI and data centers, which have been a main engine of the US stock market. The reports mentioned concerns about high debt and decreased profitability.

• Coreweave (CRWV) saw its shares in 33.1% after its Q2 report.

• Marvel Technology.

• Even the market leader Nvidia (NVDA), despite achieving the record income of the second quarter, was not immune, falling 3.32% as the negative feeling extended.

This decrease in AI actions led Nasdaq to fall 1.32%, its most steep fall since the fall driven by employment on August 1. And because Bitcoin has shown a high correlation with Nasdaq since June, its price fell 3.72%.

This sequence of events illustrated how today’s interconnected risk assets have become.

What follows Bitcoin?

With Bitcoin’s fight, market forecasts are mixed. Some analysts are still optimistic, predicting a rapid recovery, while others fear a greater fall to the level of $ 100,000.

Many expect the price to find support from around $ 107,000, but some pessimists warn of a deeper correction at $ 92,000 if the recession intensifies.

This pessimism comes from the recent lack of impulse of Bitcoin compared to Ethereum, which has attracted more attention to the market. In spite of a similar fall of 6.31% last week, the feeling of Ethereum and the ascending impulse are still strong.

In a moment, the “unnecessary fear” among Ethereum investors seemed generalized, but now it seems to have vanished largely. Tom Lee, president of Ethereum Dat Company Bitmine, even states that ETH could reach $ 5,500 in a few weeks and reach $ 10,000- $ 12,000 for the end of the year. This would require a monumental increase of the price of 100% in four months from its current negotiation price of $ 4,483.

Two main macroeconomic events could influence the market in the next week. The first is the US bond auction. UU. Tuesday, which will see that almost $ 290 billion in short -term bonds reach the market. This could damage liquidity and exert more pressure on Bitcoin.

The second is the release of non -agricultural payroll (NFP) on Friday of Friday unemployment figures. A weak PFN below 60,000 could increase the expectations of the continuous cuts of interest rates, probably increasing risk assets such as Bitcoin.

Last week’s events show that the price of Bitcoin is now more linked to global liquidity and the American market than its own internal promoters. Investors must remain cautious during this period of volatility of high potential.