The mounting uncertainty over interest rate cuts and signs of slowing economic growth are weighing heavily on Bitcoin (BTC) as it struggles to build momentum just weeks after hitting its record highs in mid-July.
Adding to the uncertainty are cooling institutional demand and further geopolitical tensions following Trump’s August 4 threat of tariffs on India in response to the South-Asian country’s continued purchases of Russian oil.
BTC price prediction
To see where Bitcoin might be by the end of the month, Finbold’s AI prediction agent used multiple LLMs to generate an average forecast for improved accuracy while incorporating momentum-based indicators into its context. You can experiment with the existing prompts or create your own. Try here now.
To make its prediction, the AI analyzed a number of technical indicators, including moving average convergence/divergence (MACD), Relative Strength Index (RSI), stochastic oscillators, and 50-day moving averages (MA).
According to the results, Bitcoin is in for a period of downturns, with the average predicted price sitting at $108,417, implying a 4.88% downside from the current price of $113,974.
Of the three LLMs used in the prediction, ChatGPT-4o was the most optimistic, with the projected price of $110,000, which suggests a downside of -3.49%.
Claude 3.5 Sonnet and Gemini 1.5 Flash 002 were slightly more bearish, the former predicting a price of $108,250, suggesting a -5.02% loss, and the latter setting the price at $107,000, implying a -6.12% downside.
Bitcoin August price potential
As mentioned, institutional flows, evolving on-chain dynamics, and U.S. regulatory changes are all painting an increasingly complex picture when it comes to Bitcoin.
U.S. spot Bitcoin ETFs shook the market on August 5, seeing $333 million in net outflows, led by BlackRock’s (IBIT), which alone shed $292 million just a day after being named the second-best ETF in monthly inflows.
The House-passed Digital Asset Market Clarity Act could provide long-sought regulatory certainty by classifying most crypto tokens as commodities under Commodity Futures Trading Commission (CFTC) oversight.
Still, a lot of uncertainty remains following the Securities and Exchange Commission’s (SEC) decision to delay the approval of the politically sensitive Truth Social ETF until September 18.
On the other hand, the CME FedWatch Tool currently sees a 92% probability of a September rate cut, which could lead to increased demand and prices.
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