Bitcoin Has Jumped Back to Life

This 3% recovery has brought some relief to investors, but it also raises an important question: Is putting all your crypto eggs in the Bitcoin basket still the smartest move?

Bitcoin price has bounced back above the $83,500 level after hitting a troubling four-month low below $78,000 earlier this week. While the 3% recovery brings some relief to investors, it also raises an important question: Is putting all your crypto eggs in the Bitcoin basket still the smartest move?

As market volatility becomes a constant companion with persistent trade tensions in North America and global economic uncertainty further dampening investor confidence, there is an increased probability of prolonged selloffs across asset classes, says Fakhul Miah, director of digital mining platform GoMining Institutional.

“The macroeconomic environment continues to pose challenges, with weaker-than-expected economic data putting pressure on risk appetite,” he adds.

This thinking is reflected in the latest round of data from the American Economic Association (AEA) revealing that the US economic models used to predict a recession in 2023 had a 75% probability of being correct.

Meanwhile, the Global Optimism Tracker from the University of Michigan showed that the final reading for July’s consumer sentiment index came in lower than expected at 65.1, down from the preliminary reading of 65.7 and falling short of the anticipated 66.

In a surprising turn of events, the cryptocurrency market experienced a wave of selling pressure, largely driven by the unfolding legal battle between the US Securities and Exchange Commission (SEC) and major crypto exchange Coinbase (NASDAQ:COIN). This selling spree saw Bitcoin price drop to a four-month low of $78,284 on Tuesday.

However, showing resilience, Bitcoin price managed to bounce back above the key $80,000 level on Wednesday.

The latest move by Metaplanet to purchase additional Bitcoin for a total of more than 3,000 BTC comes as the four-year compounded annual growth rate of Bitcoin dropped to a record low of 8%.

The post Bitcoin price recovers as traders digest pessimistic economic data, rendering a surprising low reading for the Global Optimism Tracker from the University of Michigan. Optimism slipped in July, sliding to its lowest level since February, according to the final reading of the University of Michigan’s Global Optimism Tracker, which measures consumer sentiment in 78 countries. The reading dropped to 65.1 this month, falling short of the preliminary estimate of 65.7 and sliding further from April’s reading of 68.6. This marks the lowest optimism level observed since February.