Complete Gate Post tasks to upgrade your rank

Credit Ranking

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/17242090701690791857hotspot.jpeg)
## [TL; DR]
Keywords: <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">bitcoin price</a> drop, <a href="/crypto/buy/bitcoin-btc" target="_blank" class="blog_inner_link">buy bitcoin</a>, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">BTC price</a>, institutional stablecoin pause, <a href="/price" target="_blank" class="blog_inner_link">crypto market</a> trends, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">bitcoin</a> market, stablecoin transactions, market volatility, bitcoin investment, financial institutions, blockchain technology.

## Introduction
Since the 2024 halving event bitcoin has not performed consistently as its price has been falling and rising from time to time. This may explain why the entire crypto market is down. This could also be the reason for the prevailing negative market sentiment. This analysis looks at the bitcoin behaviour since the start of August. We shall also discuss the impact of institutional investment on bitcoin price movement. 

## Bitcoin Drops below $59,000 amid the Depressed Crypto Market
During the first weekend of August bitcoin witnessed a strong move which forced its price to fall below $60,000, one of the perennial support and resistance levels. Usually, once the [bitcoin price falls](https://www.gate.io/price/bitcoin-btc "bitcoin price falls") below $60,000 it may plunge further down towards the $54,000 psychological level. On the other hand, if it shoots above $60,000 it may rise towards $70,000.

However, by the 12th of August the BTC price was fluctuating around $58,456.21, after falling by about 4.61% within the previous 24 hours. Notably, almost the entire crypto market experienced the same price shock. The main cause of the bitcoin price drop was the reduction in institutional stablecoin inflows. That drop indicated that large-scale bitcoin investors had paused buying bitcoin. 

Pertaining to this [Lookonchain, an onchain analytics platform, commented](https://x.com/lookonchain/status/1822899987287552267 "Lookonchain, an onchain analytics platform, commented"): “Institutions seem to have temporarily stopped buying, and the price of $BTC dropped 4.5% today! We noticed that institutions stopped receiving $USDT from <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a> Treasury and transferring it to exchanges 2 days ago.” The drop in institutional bitcoin investment led to a fall in the demand for the cryptocurrency.

Another factor that may look far-fetched that might have caused the slump of the bitcoin and ETH prices was the increasing [chance of Kamala Harris to win the US presidential elections](https://www.gate.io/learn/articles/gate-research-us-spot-ethereum-etf-officially-approved-biden-announces-withdrawal-from-election/3598 "chance of Kamala Harris to win the US presidential elections"). 

Some analysts believe that the events of 5 August might indicate a bitcoin market bottom after institutional stablecoin pause. The other sign of the possible bottom is Tether’s minting of $1.3 billion USDT. In fact, bitcoin dropped below the 5 month bottom of “above $49,500.” The newly minted stablecoins were channelled to several crypto exchanges that include Coinbase, OKX Kraken and Bullish.

The other factor that might have led to the low buying activity in the bitcoin market could be the fear of a recession. Some changes in macroeconomic fundamentals of leading economies such as the United States have hinted on a possibility of an economic meltdown. Despite the recent BTC price fall, generally, the asset is within a bullish flag pattern that started forming in March. The resistance of that flag is at around $68,000. The existing crypto market trends indicate that if many institutional and retail investors buy bitcoin in large amounts its price may break above the bullish flag pattern and shoot towards $100,000. However, the increase in bitcoin investment is often accompanied by a rise in stablecoin transactions.

Apart from what we discussed above there are other scenarios. The bitcoin price may fall further to reach the $55,000 demand zone before it rises again towards $68,000.

## The Puzzle to be solved: Why Institutions Paused Acquiring Stablecoins?
There are a number of reasons for institutional stablecoin pause. One of the causes of the pause is regulatory uncertainty pertaining to stablecoins. Several countries including the United States are in the process of crafting crypto legislation whose effects on stablecoins are not yet known. For instance, the European Union recently introduced MiCA that governs the functions of stablecoins in the region. 

The introduction of various central bank digital currencies (CBDCs may pose a threat to stablecoins as some financial institutions may opt to invest in CBDCs rather than stablecoins. Therefore, some financial institutions may need time to compare stablecoins against CBDCs.

Some financial institutions might have paused to acquire stablecoins due to the fear of market volatility, especially in the wake of the coming U.S presidential elections. This is because sudden change of leadership in the United States may lead to financial instability. In the past such instability led to the depegging of a number of stablecoins that include USDT and USDC. 

## Bitcoin market Analysis: Implications of BTC Slump Below $60,000
At the time of writing bitcoin is exchanging hands at $59,342 after gaining by 2.7% within the last 24 hours. Its daily chart shows that it is fluctuating in a tight range between $58,700 and $59,430 as the following graph shows 
![](https://gimg2.gateimg.com/image/article/17242092651.jpg)
Bitcoin Chart as on 17 August - CoinGecko

As observed on <a href="/price/the-graph-grt" target="_blank" class="blog_inner_link">the graph</a> the asset price is moving sideways, showing very low market volatility. The most likely trigger for another strong uptrend could be capital injection into BTC ETFs from financial institutions that believe in the transformative nature of blockchain technology. Also, looking at the current price action there is a 50-50 chance that the BTC price may rise or fall.

## Institutional Strategies towards Stablecoins
Stablecoins are likely to <a href="/price/flow-flow" target="_blank" class="blog_inner_link">flow</a> into financial institutions once some possible hindrances that include economic uncertainty, especially the fear of recession are resolved. Once stablecoin transactions resume the bitcoin price may surge above the $60,000 psychological resistance level. 

Recent [BTC price surge to $56k](https://www.gate.io/learn/articles/gate-research-btc-price-plunges-to-56k-experiences-brief-uptick-pump-fun-copycat-platforms-flourish/3835 "BTC price surge to $56k") analysis.

However, for bitcoin to pick up much price momentum it should first reach the $60,600 price level. In an X post Rekt Capital, a popular [analyst said](https://twitter.com/rektcapital/status/1822344995614978204 "analyst said"), “Bitcoin is doing all the right things to confirm $60,600 as support so as to position the price for a revisit of $65,000+ over time.” However, it is also essential to note that capital [inflow into the United States listed spot bitcoin ETFs](https://www.gate.io/blog_detail/3728/btc-etf-for-investors "inflow into the United States listed spot bitcoin ETFs") may give bitcoin the push it requires to surge towards $100,000.

## Conclusion
In the first week of August the bitcoin price fell below $60,000. Since that moment to the time of writing its price had been fluctuating between $58,700 and $59,430. Based on the current price, bitcoin can either breakdown or breakout. The resumption of capital inflow into the U.S listed BTC ETFs may help to reignite its uptrend.



<div class="blog-details-info">
<div>Author:* Mashell C.*, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

English

日本語

Since 5 August the bitcoin price is still stuck below the $60,000 price level

福利中心

铭文导航-铭文Launchpad

铭文-铭文导航

铭文-web3startup

新币挖矿

小红花-Exchange-Startup

交易-创新交易

交易-盘前交易

打新

小红花-Learn & Explore-博客

小红花-Learn & Explore-快讯

币圈-币圈-未来事件

小红花-Learn & Explore-聊天室

小红花-Learn & Explore-直播

小红花-Learn & Explore-动态

年度账单

币圈

Gate OTC

芝麻金融-更多-财富管理

机构-APIs

机构-大宗交易服务

机构-经纪商项目

全球做市商计划

机构-托管和资产管理

机构-借贷服务

机构-做市商项目

小红花-Promotions-机构和VIP服务

量化基金

机构-基础架构

机构-交易

机构-金融

结构化产品

机构-主页

衍生品-统一账户

芝麻金融-更多-抵押借币

机构

策略跟单

现货跟单

合约跟单

跟单

量化策略-探索

量化策略-进阶

量化策略-基础

机器人广场

创建机器人

探索机器人

杠杆网格

无限网格

期现套利

组合指标策略

智能调仓

现货马丁格尔

合约网格

现货网格

交易机器人

芝麻金融-更多-ETH2.0挖矿

芝麻金融-更多-法币借贷

USDE挖矿

链上赚币

芝麻金融-理财-双币宝

芝麻金融-理财-定期理财(屯币)

芝麻金融-理财-结构性理财

芝麻金融-理财-理财宝

芝麻金融-理财-余币宝

GT挖矿

芝麻金融-更多

芝麻金融-理财

赚币

衍生品-实盘跟单

衍生品-期权

衍生品-交割合约

衍生品-永续合约

衍生品-合约中心

新手引导(合约)

合约活动

衍生品

交易-量化策略

交易-杠杆ETF

交易-杠杆交易

交易-闪兑

交易-现货交易

交易

行情

买币-gateCard

买币-法币交易

买币-银行账号

买币-快捷交易

买币-信用卡

买币-paywith

买币

小红花-推广

新手指南

活动中心

小红花-Learn & Explore-学院

任务广场

小红花-Exchange-最新公告

小红花-Exchange-帮助中心

小红花-Exchange-交易所

gate商店

小红花-Promotions-推荐官计划

小红花-Promotions-邀请计划

小红花-promotions-代理商

cextg小程序

小红花

web3

Bitcoin Bounces Back From Below $58K amid Institutional Stablecoin Hesitation