Three Important Factors Weighing Heavily on Bitcoin Price

Noelle Acheson (MD of Research at CoinDesk, Head of Market Insights at Genesis Trading) joined hosts James Seyffart and Joe McCann (Unchained podcast) to discuss the current state of Bitcoin.  According to Noelle, three key factors are seen as weighing heavily on Bitcoin’s price. The first is the political and regulatory environment, which has been a major headwind for the crypto market over the past two years. 

This pressure has intensified in recent months, as changing expectations clash with a lack of regulatory progress. Additionally, with potential monetary easing on the horizon, the market remains uncertain.

The second factor is the global devaluation of currencies, adding to the overall financial instability. However, a critical point is Bitcoin’s strong correlation with equities. Historically, whenever interest rates begin to drop, stock markets often see sharp corrections. This was hinted at in early August, and many expect a more significant correction in the near future, which could also impact cryptocurrency.

Lastly, market sentiment appears to be driving a self-fulfilling prophecy, with many anticipating a tough September. As a result, investors are cautious, likely waiting until October or November when conditions are expected to stabilize, especially with upcoming tax obligations. 

No Big Catalysts On The Horizon?

Joe pointed out that aside from Trump’s rising poll numbers, there aren’t many clear positive triggers for crypto right now. With only one debate scheduled and plenty of time between now and November, it’s unclear how markets will react. On the stock side, we’re seeing some big tech stocks, like semiconductors, taking a hit, but other quality stocks are quietly performing well. 

He said that with potential rate cuts coming soon, some fear this could signal a recession. While rate cuts often boost markets, they usually happen because the economy is slowing down, which could lead to more uncertainty.

Also Read: 9/11 CPI Surprises: Here is What to Expect from Crypto Markets This Week