The crypto market is deep in the red, and just as prices are sliding, Eric Trump is back with his bullish tweet. Here is what is driving the downturn and what analysts expect next.
The crypto market is down over 5% in the past day and is currently sitting at a market cap of $3.7 trillion. Bitcoin has held to the $113K level while altcoins are bearing the brunt with Ethereum, XRP, Cardano, and Solana down by as much as 3%.
But here’s why that could be an opportunity…
Eric Trump Sparks Dip Talk Again
Amidst the market decline, Eric Trump has tweeted again: “₿uy the dips!!! $BTC $ETH.” Many in the crypto community note that each time he shares this message, prices tend to drop further before recovering.
Investor Ted Pillows also believes the current dip will likely hit its lowest point by Monday. After that, he expects the market to rebound and continue moving upward.
Bitcoin Near Buy Zone, Rally Ahead?
Analyst Michaël van de Poppe sees the current dip as a chance to accumulate. He expects August to be a month of consolidation before Bitcoin and altcoins bounce back.
The analyst recently shared that Bitcoin is entering a key buy zone and doubts it will drop much below $108K. He highlights $114,700 and $116,800 as crucial resistance levels. Once those are broken, likely by late August or early September, he expects a sharp move upward.
Bitcoin Slides to $113K Amid Geopolitical Tensions
Bitcoin fell below $115,000 on Friday, dropping to a multi-week low of $113,164, as political tensions flared. It is currently trading at $113,750, down 1.5%.
Weak U.S. job data and rising macro uncertainty are further adding pressure to the crypto market. To top it all, Bitcoin ETFs saw $115 million in net outflows on Thursday, ending a five-day streak of inflows. On August 1, Bitcoin saw $812 million in outflows.
Short-Term Holders Drive Bitcoin Sell-Off
According to data from Glassnode, over 90% of the Bitcoin supply has been in profit for more than a month, a sign that most holders are sitting on gains. While this reflects strong market performance, it also increases the risk of profit-taking.
Glassnode also noted that the recent sell-off is being driven mostly by short-term holders, who accounted for 85.5% of Bitcoin spent volume in the past 24 hours. This suggests that newer investors, not long-term holders, are behind the current wave of selling.
Analysts note that August is typically slow for crypto, and there’s no clear sign the bull run is over. Many expect the market to pick up momentum by October, which suggests that Eric Trump’s call might not be far off.
Although the timing is uncertain, we may see a potential recovery in the coming weeks.
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FAQs
The market dropped 5% due to geopolitical tensions, weak US jobs data, and $115M Bitcoin ETF outflows. Short-term holders drove 85.5% of sell pressure as 90% of BTC supply remains profitable.
Analysts like Van de Poppe see BTC’s $113K-$108K range as a buy zone before expected late August rebound. Eric Trump’s “buy the dip” tweet historically precedes recoveries.
Historically slow August may transition to October momentum. Analysts predict rebound if BTC breaks $116,800 resistance, with dip potentially bottoming by Monday.
