Bitcoin Price Forecast as Trading Volume Plunges to $5 Billion in 24 Hours – Here’s Why

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Amidst the dynamic and ever-changing landscape of the cryptocurrency market, bitcoin’s recent performance has been under scrutiny.

The world’s leading digital currency, currently trading at 29,890, has seen a marginal decline of around 0.25% on Sunday.

However, what has attracted significant attention is the significant drop in its trading volume, which has now dropped to $5 billion in a span of 24 hours.

In this bitcoin price forecast, we will explore the factors contributing to this decline in trading volume and its potential implications for future price predictions of bitcoin.

Additionally, the acceptance of Craig Wright’s appeal in the bitcoin rights dispute by a UK court and the anticipation surrounding the halving event add further complexity to the current state of the bitcoin market.

UK court accepts Craig Wright’s appeal in bitcoin rights dispute

On July 20, a British court upheld an appeal, making a significant decision that allows Craig Wright to pursue his claim that the bitcoin file format is eligible for copyright protection.

Craig Wright has been insisting since 2016 that he is the creator of bitcoin. In his complaint, he alleges copyright infringement on the bitcoin white paper, its file format and database rights related to the bitcoin blockchain.

The defendants in the lawsuit include 13 Bitcoin Core developers and various businesses such as Blockstream, Coinbase, and Block.

The decision to allow Wright’s arguments to be heard in court has raised concerns not only within the crypto community but around the world.

The Bitcoin Law Defense Foundation (BLDF) expressed concern over the situation, saying it could set a dangerous precedent for open-source software development.

According to the BLDF, allowing developers to be sued for modifying the file format of open-source software based on someone else’s claim of authorship is a significant threat to the principles of collaborative development and innovation in the technology industry.

However, the prospect of such legal disputes has created uncertainty and negative sentiment in the crypto community, affecting BTC market behavior and keeping its value under pressure.

Bitcoin price drops amid anticipation of halving event

The falling BTC price can be attributed to the upcoming block reward halving event, which is due in less than 280 days.

During the fourth reward halving event, the block subsidy of the bitcoin network will be reduced from 6.25 BTC to 3.125 BTC.

Reward halving events occur approximately every four years, with the aim of creating a scarcity in bitcoin by halving the number of newly issued bitcoins to miners.

As a deflationary asset, the limited total supply of 21 million bitcoin is one of the factors contributing to its value.

The halving event creates a number of implications for miners and the network.

With lower block rewards, some miners may find that their operations are becoming less profitable or even unprofitable, leading to a potential decrease in network security and stability as miners may exit the network.

In order to secure the network and maintain revenue, miners may prioritize transactions with higher fees as transaction demand increases and bitcoin gains wider acceptance.

However, a delicate balance exists as extremely high transaction fees may deter everyday users, thereby limiting the adoption of bitcoin as a medium of exchange.

Anticipation and speculation regarding the halving event also influence market sentiment and prices.

As investors and participants anticipate the impact of the halving on the price of bitcoin, this could increase attention and pressure on miners.

bitcoin price prediction

As of Sunday, bitcoin is currently displaying a lack of volatility, resulting in volatility within its trading range.

On the daily time frame, bitcoin is in a consolidation phase, range bound within a narrow range. Resistance is identified near $31,400, while support is found near $29,600.

An important factor to watch is whether bitcoin can close decisively above the $29,600 level, as this could potentially trigger a bullish move for the cryptocurrency.

Bitcoin Price Chart – Source: Tradingview

However, if there is a clear break below $29,600, bitcoin could find support near $28,450, and possibly even lower to $27,450.

For an upside move, a move above the $31,350 level will set the stage for the next important target near $32,500.

Given these price levels, it is necessary to closely monitor the $29,600 level as a crucial point for today’s trading activity.

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