According to the Wall Street Journal, August was quite a calm month for Wall Street. This had an inevitable influence on the crypto market. Thus, Bitcoin reached $50,000 and then inched down. On September 1, the first cryptocurrency was trading at $48,279.42.
Analysts estimated that from January to April of 2021, the price of a highly volatile asset doubled. In the following three months, it declined approximately by 52% and it advanced by 65% from July to August.
The fact is that investors switched their interest to other digital assets, primarily to Ethereum, thus decreasing demand for Bitcoin. A report from CoinShares unveiled that in August, market participants invested $22.4 million in ETH and $18.7 million in Cardano. On September 1, Ethereum appreciated by 10% to trade at $3,730, the highest level since May 2021.
The mounting interest in non-fungible tokens (NFT) became another stumbling block for BTC. NFT is a digital asset similar to BTC that has a unique set of features. A rise in NFT was mainly boosted by such large US companies as Visa Inc. and Facebook Inc. The leading operator of payment systems purchased NFT called CryptoPunk. Meanwhile, Facebook announced a possibility to create a service for NFT in its e-wallet.
By now, investors have withdrawn $61 million from Bitcoin. Notably, the outflow began 14 weeks ago. However, analysts still suppose that the first cryptocurrency will recover in the short and mid-term because a slump is always followed by a jump.
