Bitcoin Traders Highlight Macro Factors While Gauging Outlook

Bitcoin traders focused in on macro factors when describing their outlook of where the digital currency will go next as it traded within a relatively narrow range.

The world’s largest digital currency by total market value fell to roughly $63,700 today, dropping from $65,341.83 and suffering a modest decline of approximately 2.4%, according to Coinbase data from TradingView.

Following this downward movement, several analysts offered their views on what the cryptocurrency will next.

“Bitcoin enters August rangebound after five weeks of sideways trading which has pinned the market in a narrow band between 62k and 66k,” Jeff Anderson, managing director at STS Digital, said via email. “Conviction is thin on both sides as summer illiquidity reigns supreme with attention focused on AI.”

“Volatility has naturally compressed (IVs are in their 1st percentile) while we wait on unresolved catalysts: the Fed’s next move and the fate of the Clarity Act,” he added, speaking to the outcome of the upcoming policy meeting and the proposed legislation that would provide better guard rails for digital assets.

“A decisive break of either level in spot should see volatility expand quickly, and the closely watched CPI this Wednesday will be our first indicator following Warsh’s inflation focused press conference.”