Bitcoin’s price has recently slipped back to $58,000, marking a 12% decline for August and reversing gains from the previous month. This drop comes amid a pattern of volatility where Bitcoin has tended to rise during Asian trading hours but fall during U.S. hours. The market is currently in a cautious phase, with concerns about upcoming economic data and potential liquidations of leveraged positions if Bitcoin’s price continues to drop.
Despite this downward trend, there is some optimism for a potential rebound next week, especially as new U.S. economic reports could influence market sentiment. If these reports, particularly the Nonfarm Payrolls Report, signal a weaker economy, it could lead to expectations of more aggressive rate cuts by the Federal Reserve, potentially giving Bitcoin a boost.