The sell-off in the global stock markets is casting a bearish shadow on the cryptocurrency markets, signaling near-term weakness.
Bitcoin (BTC) has pulled back toward the middle of the $55,724 to $73,777 range after the bulls failed to maintain the price above the psychological resistance of $70,000. For the bulls waiting for a breakout of the range, August’s historical performance does not offer confidence. Coinglass data shows that August has recorded a meager 2.24% average rise since 2013.
The weakness in the equity markets worldwide is casting a shadow of uncertainty on risk assets. The Japanese stock market, Nikkei, fell 6% on Aug. 1, its worst fall since the “Black Monday” crash of 1987. Bitcoin’s $60,000 support may come under serious threat if the sell-off extends to the cryptocurrency markets.
Irrespective of the near-term weakness, analysts remain positive on the long-term prospects of Bitcoin. Popular analyst Willy Woo said in a post on X that a 3% portfolio allocation by financial institutions could propel Bitcoin to $700,000.
