The Monthly Crypto Report
August Bitcoin and Crypto Breakdown
The Monthly Crypto Report is sent to premium subscribers of the newsletter. I break down what’s happened so far this year, what happened in the last month, and what to watch in the month ahead. Subscribe if this was shared with you.
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So Far This Year
Bitcoin opened 2022 at $46,311.74.
Since then, it’s down 57%, closing August at $20,049.76. Bitcoin, along with traditional markets, tumbled last month, losing roughly 15% from July.
In July, it was still a question mark. We didn’t yet know if $20,000 had truly reemerged as key long term support. So far, it’s holding up. Since dropping toward the key psychological price level that represents that previous market cycle high, bitcoin has managed to trade within a roughly 20% range around $20k.
Bitcoin opened August at $23,336.72.
It closed the month at $20,049.76.
August was a choppy month for bitcoin. Much of the volatility last month was due to ongoing issues in the macro environment.
In the US, the Fed announced that there’s more pain coming when it comes to the fight against inflation. This was on top of news about China’s slowing economy and record high inflation in Germany. As time goes on, more and more economic data is pointing toward higher inflation through Q4 and central banks everywhere aren’t about to ease up.
Traditional markets aren’t helping bitcoin. Ongoing inflation fears, global supply chain issues, and an energy crisis are preventing any kind of breakout for both traditional and crypto markets.
In the UK, the incoming Prime Minister will have to deal with soaring energy bills. Germany’s citizens have already seen unprecedented energy costs and the government has announced a $65 billion package to combat the crisis.
Despite the pessimistic economic situation globally on top of more chaos in crypto markets due to recent events, such as the ethereum-Tornado Cash Setback, there’s reason for optimism around bitcoin.
A full-on bull market may not be in the cards until closer to the next bitcoin halving but the world’s largest cryptocurrency by market cap displayed amazing resiliency throughout the last two months.
The Month Ahead
What to Expect in September
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