Bitcoin showed a slowdown compared to last month and returned to operate at around $ 20,000
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In the month of July, Bitcoin managed to rise about 17% and was considered the best month of the year for the digital asset. In August, however, the scenario did not remain the same. The cryptocurrency returned to retreat and returned to the $ 20 thousand house. Over the course of the month, it managed to reach US$ 25,000 but did not hold.
With the aversion to risk with the rise in the interest rate in the United States and the stock market that recorded a fall, Bitcoin was impacted.
Bitcoin in August
At the beginning of the month, the projections portrayed optimism, since the last meeting of the Federal Reserve (US Central Bank) presented results a little more contained. As a result, the price of the cryptocurrency rose by about 9% in the first few days.
However, the most recent announcement by Jerome Powell, chairman of the Fed, changed the course of Bitcoin, in which he stated that an even more contractionary monetary policy will be adopted due to the worsening reality of the world economy.
For analysts, it is likely that in the coming months the main cryptocurrency, as well as the general market, will be influenced by macroeconomic factors. Future Fed announcements will also continue to impact the digital currency.
If the monetary authority pursues a more aggressive policy, Bitcoin should continue to operate lower. Otherwise, if the Fed announces a less restrictive agenda, the crypto could bounce back again.
Ethereum also dropped
Ethereum (ETH), the second most popular cryptocurrency in the world, also recorded declines in the last month of August, but still to a lesser extent than Bitcoin. The loss was around 8% in the period.
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With The Merge, an event that should alter the network’s main system, the scenario is one of positivity in the crypto universe. The change should now take place in September and could bring positive results to the market.
General cryptocurrency crisis
Cryptocurrencies are considered high risk assets due to their high volatility. However, this year has not been a good time for cryptocurrencies in general. The world economic reality has faced adversity and risk aversion has made more and more investors migrate their assets to safer means.
In addition, internal universe factors also directly impacted the performance of coins throughout this year.
Importantly, last year Bitcoin reached its all-time high with its market cap at $69,000. Today, it is around US$ 20 thousand, a devaluation of more than 60%.
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