August proved to be one of the toughest months for the crypto market, marked by a significant decline in overall market capitalization, which fell to a six-month low of $1.96 trillion amid what analysts called “Black Monday.”
This downturn saw Bitcoin (BTC) plummet from $68,000 to approximately $49,000, igniting concerns among bullish investors. However, market expert Lark Davis suggests that the choppy sideways price action may soon come to an end, paving the way for a potential surge as bullish factors align for the fourth quarter.
Final Opportunity To Buy At Discounted Prices?
In a recent social media post, Davis highlighted that the coming 3-4 weeks could represent a final opportunity for investors to acquire their favorite cryptocurrencies at discounted prices.
Both Bitcoin and Ethereum (ETH) have seen notable declines, with losses of 6.7% and 5.7%, respectively, over the past week. Among the cryptocurrencies that Davis identifies as particularly attractive, Solana (SOL) fits the bill as it is currently trading at around $129, down nearly 16% over the same period.
Related Reading
Despite these tempting prospects, historical data shows that September is typically a challenging month for BTC. Analysis shows that in six of the last seven years, Bitcoin has finished September in the red, with an average loss of around 4.5%.
If this trend continues, some analysts predict that Bitcoin could fall to around $55,000 by the end of the month. This could have a ripple effect throughout the cryptocurrency market, as other tokens often mirror Bitcoin’s price movements.
A Key Catalyst For Crypto Market Recovery
Adding to the complexity of the current market landscape are upcoming interest rate decisions that could significantly affect Bitcoin’s short-term volatility and long-term trajectory, as Bitcoinist reported on Monday.
Per the report, a potential 25 basis point cut by the Federal Reserve may signal the beginning of an easing cycle, potentially increasing liquidity and promoting long-term price appreciation for Bitcoin.
On the other hand, a 50 basis point cut could trigger an initial price spike, followed by a correction as recession fears resurface. Bitfinex’s recent report warns that a rate cut could lead to a 15-20% decline in Bitcoin’s price, with projections suggesting a bottoming out between $40,000 and $50,000.
Related Reading
Click Here to Read the Full Original Article at NewsBTC…
