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Bitcoin Faces Pressure Amid US Economic Data
The leading cryptocurrency, Bitcoin, has come under pressure again as of Friday, just before the weekend. Following the release of US economic data, particularly the PCE index, speculation regarding imminent interest rate cuts in the United States has increased. The PCE index rose by 2.6% year-on-year in July, aligning with expectations, which has led to a slight uptick in rate cut fantasies.
"The Fed-Watch Tool from CME Group estimates the chance of a rate cut at the upcoming Federal Reserve meeting on August 17 at 87.2%, slightly higher than the previous day's 86.7%."
Despite reaching a record high of over $124,000, the recent trend of profit-taking may continue, and investors should brace for potential headwinds. Uncertainties surrounding Fed Governor Lisa Cook, who is facing potential dismissal by President Trump, add to the market's volatility. The upcoming Non-Farm Payrolls report is also anticipated, especially after last month's surprisingly weak figures.
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"Investors should remain cautious as the market navigates through these economic uncertainties."
Key Takeaways: Bitcoin is under pressure due to US economic data; the PCE index rose by 2.6%. The chance of a rate cut is estimated at 87.2% for the upcoming Fed meeting.
JPMorgan Claims Bitcoin is Undervalued
According to a recent report by JPMorgan, Bitcoin is currently undervalued, primarily due to its significantly reduced volatility. The bank noted that the rolling six-month volatility of Bitcoin has dropped from nearly 60% at the beginning of the year to about 30% now, marking the lowest level ever recorded. This reduction in volatility makes Bitcoin increasingly attractive for institutional portfolios.
"On a volatility-adjusted basis, Bitcoin's market capitalization should be 13% higher, equating to a price of approximately $126,000."
JPMorgan's analysis suggests that Bitcoin is undervalued by about $16,000. The report also highlights that Bitcoin's price movements are closely tied to the performance of gold, which has seen a significant rally recently. However, some analysts caution against potential corrections in the crypto market, advising profit-taking strategies.
Key Takeaways: JPMorgan states Bitcoin is undervalued, with a suggested price of $126,000 based on reduced volatility. Analysts warn of potential market corrections.
Trump-Backed Bitcoin Miner Plans IPO
American Bitcoin, a mining company co-founded by Donald Trump's sons, is preparing for an initial public offering (IPO). This move reflects the growing interest in cryptocurrency mining and the potential for significant returns in the sector. Investors are encouraged to consider this opportunity as part of their portfolio diversification strategies.
"The enthusiasm for cryptocurrencies seems to run in the Trump family, with both Eric and Donald Jr. involved in this venture."
As the IPO approaches, market analysts are closely monitoring the developments, which could signal a broader acceptance of cryptocurrency mining in mainstream finance. This could also pave the way for more investments in the sector, especially from institutional players.
Key Takeaways: American Bitcoin, co-founded by Trump's sons, is set to go public, indicating growing interest in cryptocurrency mining.
Bitwise Predicts Bitcoin's Future Growth
Bitwise Asset Management has released a study projecting that Bitcoin could reach $1.3 million by 2035. The report emphasizes that the inelastic supply of Bitcoin, combined with ongoing demand growth, will be the primary driver of this long-term price increase. The firm anticipates an annualized growth rate of approximately 28% in its base scenario.
"Institutional investors are expected to increasingly allocate funds to Bitcoin, particularly as an alternative to gold."
Despite the current market corrections, Bitwise remains optimistic about Bitcoin's long-term prospects. The report also suggests that in a bullish scenario, Bitcoin could even approach $3 million, driven by institutional demand and market dynamics.
Key Takeaways: Bitwise forecasts Bitcoin could reach $1.3 million by 2035, driven by institutional demand and a fixed supply.
XRP Experiences Decline Amid Bitcoin Selloff
XRP has fallen by 4% during a recent Bitcoin selloff, retreating from a resistance level of $3.02. The token is currently trading around $2.89, with support seen at $2.85–$2.86. Despite this decline, the cup-and-handle formation remains intact, suggesting potential for future price recovery.
"Active addresses on the XRP Ledger increased by 20% ahead of the decentralized media launch scheduled for September 12."
Market participants are closely watching XRP's performance as it navigates regulatory uncertainties and anticipates decisions from the SEC regarding crypto ETFs. The integration of Linklogis into the XRP Ledger has also contributed to a 23% increase in equity, indicating growing institutional interest.
Key Takeaways: XRP has declined by 4% amid Bitcoin's selloff, but the cup-and-handle pattern suggests potential for recovery. Active addresses have increased by 20% ahead of a significant launch.
Bitcoin's Price Forecast: Aiming for $1.3 Million?
Despite current corrections, analysts from Bitwise have projected that Bitcoin could reach $1.3 million by 2035. This optimistic forecast is based on the cryptocurrency's inelastic supply and increasing institutional demand. The report suggests that Bitcoin's price could grow at an annualized rate of 28% in the base scenario, with a bullish scenario suggesting even higher growth.
"The unyielding supply of Bitcoin combined with sustained demand growth is the key driver of our long-term assumptions."
While short-term fluctuations may present challenges, the long-term outlook for Bitcoin remains positive, with potential for significant price appreciation as institutional interest continues to grow.
Key Takeaways: Analysts predict Bitcoin could reach $1.3 million by 2035, driven by its fixed supply and increasing institutional demand.
Sources:
- Bitcoin erneut unter Druck – US-Preisdaten bewegen kurzzeitig
- "Bitcoin ist unterbewertet": JPMorgan mit neuem Kursziel
- Trump-unterstützter Bitcoin-Miner vor Börsengang – dieser AKTIONÄR-Tipp mischt mit
- 4 Bitcoin Prognosen von Bitwise: Was passiert bis 2035?
- XRP fällt um 4 % im Zuge eines Bitcoin-Verkaufs, jedoch bleibt die Cup-and-Handle-Formation für $5 intakt
- Bitcoin: Kurs auf dem Weg zu 1,3 Millionen US$?!
