The price of Bitcoin (BTC) is in a bullish correction mode, a twist that might not last long. This is because some macroeconomic events are now weighing on the coin. If unguarded, Bitcoin long traders might face massive liquidation as a short-term reaction to uncertain economic trends.
Bitcoin (BTC) Price and Impact on Altcoin
Bitcoin (BTC) price at the time of writing was trading at $59,326.10, up by 1.32% in 24 hours. The coin recovered from its 24-hour low of $57,690.65 as traders resisted heightened volatile selloffs. According to market analyst @Seth_fin on X, Bitcoin has seen its dominance shift upward.
While this dominance boosts the concerns of altcoin holders, it does not negate the existing BTC headwinds. In reality, these headwinds can impact altcoins as much as it will affect BTC. For instance, while Bitcoin price has turned positive, Ethereum (ETH) is also up 0.5% to $2,610.10.
Assets like Binance Coin (BNB) and XRP followed the bullish trend. Both coins traded for $529.34 and $0.5655, with 2.64% and 1.04% gains in 24 hours, respectively. While the majority of altcoins in the top 20 have registered gains in hopes of rebounding, BTC might sway this trend soon.
Bitcoin and Macroeconomic Trends to Watch
As part of his series of updates on X, the analyst hinted at some macroeconomic headwinds that might derail Bitcoin price growth. Top on his list is the MonkeyPox global health emergency, as declared by the WHO.
#Bitcoin about to CRASH! 📉 Because:
– MonkeyPox GLobal Health Emergency declared by WHO. 🐒
– Recession starts in 2025-2026.
– War in Ukraine and Middle East.
– Blackrock and Wallstreet buy too much Bitcoin and it is no longer Decentralized and for the people.
– Inflation is… https://t.co/GMkVevceXb pic.twitter.com/e8HXGMiq4g— Seth (@seth_fin) August 17, 2024
Like the COVID-19 pandemic, any form of escalation of this disease can harm monetary systems. However, indirectly, BTC might also have an effect in the long term. Besides this, Seth predicted an impending recession that may start in 2025 or 2026.
Some of these headwinds, as pointed out, also feature institutional adoption of BTC through ETF issuers. One of the top firms offering this product is BlackRock, with significant investment from the State of Wisconsin Investment Board (SWIB). Although this institutional adoption is generally considered a good thing, Seth believes it negates the decentralized status of BTC.
He also pointed to creeping inflation, unemployment rates, and the overvaluation of some AI stocks like NVIDIA. Some of these pointers can inform central banks’ decisions to adopt dovish or hawkish monetary policies.
Though most macroeconomic policies favor Bitcoin, initial uncertainty might impact price negatively.
Softening Regulation and Nation-State Adoption
The broader digital currency ecosystem is maturing at a fast pace. With the general election in the United States fast approaching, the regulation by enforcement tactics of the SEC is reducing.
The Gary Gensler-led commission has issued a Wells Notice to top industry players like Uniswap and has active cases against Coinbase and Binance US, among others. However, its enforcement actions have softened, especially with the unprecedented approval of the Ethereum ETF in May.
This softening stance is spreading to other regions around the world. Most regulators are now exploring avenues to accommodate crypto-related investments or offerings. Thus far, the United Kingdom, Hong Kong, and Australia have entered the crypto ETF scene this year.
Brazil recently took a step further by approving the world’s first Solana ETF product. At this pace, nation-state adoption of crypto might soar, placing the ecosystem on a unique path for growth.
