On August 3, Bloomberg reported that in response to the recent decline of Bitcoin, Mizuho Securities senior analyst Dan Dolev said that Bitcoin is not yet the safe-haven tool that people hope for. If the unemployment rate rises and people lose their jobs, investors will have to cash out their tokens.
Matthew Graham, founder and managing partner of Ryze Labs, said that several factors are affecting the price of Bitcoin in the short term, including the possibility of lower interest rates, the possibility of Trump's victory in the upcoming election, and the potential impact of the Harris administration's reform of cryptocurrency policy. The market is keenly evaluating the possibility and potential consequences of such a policy shift.
In the days leading up to the Fed meeting on Thursday, the price of Bitcoin has fallen from nearly $70,000, even if policymakers ultimately choose to keep interest rates unchanged. Youwei Yang, chief economist at BIT Mining, said this shows that the cryptocurrency market may have priced in a broader market downturn before it happens. The current market is entering a risk-off phase, with funds seeking safe havens. With the maturity of ETFs and the regulatory environment, Bitcoin is now a more mainstream consideration in this category than before. However, the volatility of the token shows that these signals are unreliable. Overall, the market's hot money liquidity is not enough to support a full-scale bull market, but it may be enough after a certain degree of interest rate cuts.
