Bitcoin Set for August Price Drop, But Analyst Sees Quick Recovery

Financial analyst Andrey Poroshin expects Bitcoin to drop to between $60K and $62K in August due to moderate volatility and a lack of support from macroeconomic decisions. According to Poroshin, the Federal Reserve's recent decision to maintain interest rates failed to sway the market, leaving participants cautious.

The U.S. Federal Reserve has not given the markets either positive or negative signals, so participants remain cautious, Poroshin declared. He pointed out that inflation is still above the target 2% level, adding to the uncertainty in the crypto market.

However, Poroshin predicts that Bitcoin will recover towards $70K after retesting the lower price range. He believes that the exit of weak hands from the market, as seen with BitMEX winding down its operations, will 'traditionally coincides with the formation of reversal zones and a decrease in short-term pressure on the price.'

Poroshin also notes that Bitcoin is free from geopolitical shocks, as the escalation of the Iran-U.S. conflict is losing its influence in the crypto market. He does not see any significant moves in August regarding the passage of the CLARITY Act, which keeps the market uncertain about its approval.