Since May 2022, after the collapse of Terra (LUNA), the crypto market has not been in such good shape with an increase in negative news in the space. Even now, the general crypto market sentiment is not positive with increased price volatility and declining interest in crypto derivatives.
According to the report, in the month of June, there was a massive drop in derivatives trading volume on well-known exchanges like Binance and OKX. Now, it is fascinating to know how Bitcoin will see its price movement for the month of August 2022.
Will August be in favor of Bitcoin price?
Looking at the record history, August was quite a good month for the crypto world. The last two years, i.e. August 2020 and August 2021, the flagship currency has seen a rise of 2.74% and 13.42% accordingly. However, looking at the broader market, August has always seen both a bullish and bearish meltdown.
As of this writing, Bitcoin is selling at $21,945 with a pull of 3.64% over the past 24 hours. As news regarding the upcoming FOMC meeting scheduled for July 26-27 swirls around the crypto space, cryptocurrencies, especially Bitcoin, are showing a negative reaction.
It was only last week that the King currency recovered to a level of $24,000 after struggling against the downside pull for more than two months. Comparing the current Bitcoin price and last week’s price, BTC is down more than 1.20%.
For the next month ahead, August 2022, Bitcoin is expected to climb to an average of $33,695. However, things might not go as planned with currency developments.
Crypto Derivatives Trading Volume Sees Drop
On the contrary, although broader market participants are distressed by the market reaction ahead of the FOMC report and interest rate hike, traders and pundits are predicting that there is more to see in the market. crypto space for the coming weeks.
One of the crypto traders and enthusiasts, Crypto Zombie, is of the opinion that the next few weeks for Bitcoin are critical with the upcoming FOMC meeting and the US GDP report.
June saw several crypto lending companies become insolvent, which made the overall crypto market look pessimistic. According to CryptoCompare, this has led to a decline in the volume of derivatives transactions.
In June alone, crypto derivatives trading volume fell 7.01% to $2.75 trillion. This marking was one of the lowest derivatives trading volumes recorded since July 2021.