to leave a comment.
▲ Bitcoin (BTC)/AI generated image
A forecast has emerged that Bitcoin (Bitcoin, BTC) could form its final bottom around $48,000, even if the US cryptocurrency market structure bill fails to pass.
The cryptocurrency YouTube channel Altcoin Daily reported in a video released on August 6 (local time) that there is still a possibility for the US Senate to vote on the US cryptocurrency market structure bill before the August recess. US Senator Cynthia Lummis stated, “I expect the session to continue through the weekend, not just ending on Friday,” adding, “I believe the bill will be voted on before the August recess.”
However, as of the video's release, the bill was not included in the Senate schedule. There are only two days left before the recess, and even if the session is extended through the weekend, there isn't much time for processing. Lummis emphasized that she negotiated with Democrats for 11 months and added over 300 pages to the bill at their request, stressing that senators' pros and cons should be officially recorded.
Altcoin Daily predicted that if the bill does not pass, Bitcoin could fall to the $50,000 range or even $48,000. This decline could be the final stage of the bottoming-out process, according to the analysis. The channel explained that Bitcoin has expanded its adoption over 16 years without regulatory clarity. It also noted that the investment thesis of digital gold with a fixed supply remains valid amidst ongoing government currency issuance.
Major cryptocurrencies like Ethereum (Ethereum, ETH) and Solana (Solana, SOL) are also expected to hold up, supported by institutional adoption. BlackRock and Morgan Stanley are showing interest in smart contracts and major blockchain networks. Citi Bank is hiring a head for its cryptocurrency business, and Western Union has launched a Solana-based payment card that can be used in 37 markets and at 175 million Visa merchants. Solana's tokenized stock trading volume in July was $1.45 billion, accounting for approximately 82% of the total blockchain trading volume.
The channel presented three trends as evidence that Bitcoin is in a bottoming-out process. Digital asset holding companies, which led buying in the previous bull market, have turned into sellers, and Bitcoin is hovering near the 200-week moving average, where past bear market bottoms were formed. Relative strength has also been observed, with Bitcoin holding up even when Nasdaq declines. In previous cycles, it took approximately 8 months to complete the bottom formation after reaching the 200-week moving average, and if the same pattern repeats, the correction process could continue until October, according to the analysis.
[Key Summary of the Article]
-Altcoin Daily predicted that Bitcoin could fall to $48,000 if the US cryptocurrency market structure bill fails.
-Institutional and corporate expansion into cryptocurrency businesses, including BlackRock, Morgan Stanley, Citi Bank, and Western Union, continues.
-The shift of digital asset holding companies to selling, the approach to the 200-week moving average, and relative strength compared to the stock market were presented as signs of a Bitcoin bottom.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.