How Bitcoin (BTC) Price Could Fare In August 2022 Post FOMC?

In line with the overall crypto market sentiment, activity around crypto derivatives too dropped drastically in the recent times. Data on the derivatives trading from various exchanges shows a clear pattern in this direction. In the month of June alone, derivatives trading volume plummeted significantly, in popular exchanges like Binance and OKX. In this context, it would be interesting to see how will Bitcoin price August fare.

August To Be A Turning Point For Bitcoin Price?

Data on spot trading in the current month is yet to be seen. Meanwhile, this brings to the fore the key question of how would the scenario be like in August. In the last two years, the month of August gave positive returns in terms of price improvement over the period. In August of 2020 and 2021, Bitcoin rose by 2.74% and 13.42% respectively. Overall, it has been a mixed bag of results in the month, with equal number of positive and negative returns over the years.

As of writing, Bitcoin is trading at $20,917, down 4.11% in the last 24 hours, according to CoinMarketCap. Ahead of the Federal Open Market Committee’s decision on interest rate hikes, Bitcoin showed a negative price action to open the week. Last week, Bitcoin spiked to a high of $24,115. When compared with last week’s prices, Bitcoin (BTC) is currently down nearly 6.01%. In the next month, Bitcoin is hoped to trade at an average of $33,695 but things could likely go either ways from the current level.

Amid widespread fears of further selloff ahead of the FOMC report, traders feel more is still to come in coming weeks. Crypto Zombie, a crypto enthusiast, said the upcoming weeks are crucial for Bitcoin. “Bitcoin is facing one of its most important weeks yet! Not only is BTC at critical technical levels, but we have both the FOMC meeting and GDP report.”

Crypto Derivatives Trading Momentum In Exchanges

According to data provider CryptoCompare, derivatives trading volume dropped drastically in the month of June this year. June was marred by negative sentiment in the crypto market thanks to several companies in the credit space reeling in crisis. This led to the monthly derivatives trading volume recording lowest figures in close to a year.

“Derivatives trading volume fell 7.01% to $2.75 trillion in June. This was the lowest derivatives volume recorded since July 2021.”

Also, June saw spot trading volumes across all centralized crypto exchanges fell 27.5% to $1.41 trillion. These are the lowest figures recorded since December 2020.