As the summer lull collapses, Bitcoin price appears to have reached a temporary flat. Therefore, investors may need to be prepared for a similar model in August. So, what position should I take? Here is what investment advisor Ric Edelman had to say about the biggest cryptocurrency…
It’s time to increase positions in the leading cryptocurrency
According to Coin Metrics, the largest crypto by market capitalization witnessed a significant 12% increase in June. It is then estimated that it will close the month of July with a decrease of approximately 3.5 percent. Last week, Bitcoin closed with a 1.9 percent drop. Thus, it exhibited its fifth consecutive weekly decline and its worst performance since June 9th. Historically, the third quarter has been the weakest for Bitcoin, as reported by CoinGecko. Average earnings up to 2014 were just 4.67 percent. Positive third-quarter growth has been seen in only four of the nine quarters since Bitcoin’s inception.
Despite the recent downward trend, Bitcoin has increased by about 77% over the year. Therefore, it creates optimism among investors. Various factors are fueling the potential rise for Bitcoin in the future, including the recent XRP decision, crypto legislation moving forward in Congress, multiple Bitcoin ETF implementations, and the upcoming Bitcoin halving scheduled for spring 2024. Ric Edelman, the founder of Edelman Financial Engines, which manages 300 million dollars, also drew attention to these issues. He believes that these factors will raise the price of Bitcoin significantly in the next six months.
There is a pause in the short term
However cryptocoin.com As we have reported, Edelman expects more stagnant market conditions in the short term. He points out that significant news is unlikely to emerge at this time, as Gary Gensler, Chairman of the U.S. Securities and Exchange Commission, is not expected to change his stance on crypto, and it is unlikely that the SEC will make a decision on Bitcoin ETF applications. Congress is also not expected to pass any major crypto-related legislation in the near future. Despite this “wait and see” approach, Edelman believes the signals for these developments are strong.
Looking back at July, the market initially had bright prospects as BlackRock applied to launch a spot Bitcoin ETF, bringing renewed hope to investors. Additionally, the SEC’s lawsuits against major exchanges Binance and Coinbase were expected to provide some regulatory clarity, along with the long-awaited XRP ruling. While trading volumes and liquidity remain stagnant, the crypto industry is wrapping the month on a positive note as Congress has four crypto bills going for a full House vote for the first time.
Interest rate hikes affect investor movements
Also, the continued interest rate hikes by central banks, including the Fed and the European Central Bank, have given investors more reason to add to their Bitcoin positions. Bitcoin’s correlation with tech stocks has weakened. It has reverted to the status of an uncorrelated entity. Thus, it offered an attractive option for investors who want to protect their diverse portfolios. As a result, the industry closely monitors potential developments.
