Bitcoin Slips Back to $58K in Continued Desultory Action, but Next Week Could Offer Upside Excitement

In approximately 25 hours from the end of August, Bitcoin has dropped over 12% this month, essentially erasing its gains from July. Ether, on the other hand, has fallen by 25% in August, reducing its yearly growth to a mere 7%. Similarly, Solana has decreased by 25% this month and still shows a 31% increase for the year.

Buy Asia, sell the U.S.

It’s not just a feeling that this price action seems repetitive; it’s based on facts. As Miles Deutscher pointed out earlier today, bitcoin has seen a significant increase of over 5% during Asian trading sessions over the past fortnight, while experiencing a decline during U.S. hours.

“Like clockwork,” he added minutes ago as bitcoin once again sold off in the U.S. morning.

Change in trend ahead?

Despite increasing institutional adoption, a potentially favorable regulatory landscape, and anticipated Federal Reserve interest rate decreases, the value of Bitcoin has fallen by over 20% since it reached its record high of approximately $73,500 over five months ago.

At present, it may be challenging for bulls to conceive of any events that could disrupt the current market situation. However, the situation could become more intriguing once the United States resumes activity following the Labor Day holiday next week, as a fresh batch of economic reports could potentially reshape the larger economic landscape.

Next week’s spotlight will shine on the Nonfarm Payrolls Report for August, which falls on Friday, September 6. The July jobs report showed poor performance and may have been the decisive factor pushing the Fed to announce a rate cut in September. As of now, the market anticipates a modest 25 basis point reduction around mid-September. However, if we see another weak jobs report, investors could swiftly adjust their expectations, foreseeing a 50 basis point adjustment from the central bank. This could provide a significant boost to risk markets and potentially cryptocurrencies like bitcoin as well.

Conversely, a robust September job report might lead to a more cautious market view on loosening monetary policy. Regardless, turbulence seems imminent, with roughly a 50% likelihood of positive market fluctuations. At this stage, optimists can only anticipate the best-case scenario.