BTC Market Report – July Bitcoin Price Fueled by China Securities Volatility, Greece Crisis

In July, the price of bitcoin surged as a result of the Greek budget crisis and the decline of the Shanghai Stock Exchange, according to monthly market report of bitcoin exchange itBit.

Earlier in the month, the price broke through $300 level before settling back down at a holding level of $280-290.

Like the US dollar, bitcoin and a few other asset classes are the only markets to be up for the month of July.

itbit - btc vs other markets

Source: itBit Bitcoin Market Report

A key macro trend that affected bitcoin markets has been the volatility of China’s securities market. The Chinese authorities have introduced measures over the past two months to try to stabilize the country’s security markets, but this has failed to halt the Shanghai composite’s downward trend.

itBit’s market report warned bitcoin traders of the strengthening US dollar:

After a nice July, the USD remains firmly entrenched as the strongest currency in the world. Ongoing economic unrest in China and the EU coupled with better domestic economic numbers and an impending interest rate hike serve to buoy the USD.

The USD was one of a handful of asset classes (including bitcoin) to be up for the month of July. However, as we have warned in
previous market reports, USD strength has historically put downward pressure on the price of bitcoin.

itBit also highlighted the lengthening base of the bitcoin market:

Breaking above the $296-$300 range and maintaining that level will be really important for the bitcoin market as it looks to move higher. Currently, price action has been consolidating within this range while looking for reasons to advance.

Bitcoin has been forming a long base over the past few months. There is an old Wall Street saying “the bigger the base, the higher
into space it goes.” As you see in the chart below, bitcoin is testing the top range of this base which is a bullish sign.

The report identified three potential trends to watch for in August:

  • Additional outflows from Chinese markets might boost the bitcoin price.
  • Impending US interest hike might hurt bitcoin price.
  • Bitcoin might continue to correlate with traditional markets and decouple from commodities.

itBit also noted the growing list of major financial institutions that are experimenting with blockchain technology, including BNP
Paribas, Societe Generale, Citi, UBS, Barclays, Goldman Sachs, Banco Santander and Standard Chartered.

itbit - btc price at a glance
Source: itBit Bitcoin Market Report

Journalist, policy analyst, and evangelist of new, disruptive technologies including big data analytics, Internet of Things, and cryptocurrencies. Internet industry veteran with regional c-suite experience, and journalist credentials earned at, Internet World magazine, and Mecklermedia Corporation.
Free AllCoinsNews Email Updates
Get the latest cryptotoken market news and blockchain developments!
We respect your privacy.