The price of bitcoin (BTC) barely held the $29,000 level early Wednesday as the summer slump in trading activity weighs on digital assets.
The largest cryptocurrency by market capitalization sank to as low as $29,028, the weakest level since August 7 and down about 1.3% from $29,400 a day ago. The price had bounced modestly to just over $29,100 at press time.
“Bitcoin still struggles to find any directional momentum as prices remain glued to $29K,” Vetle Lunde, senior analyst at digital asset firm K33 Research said in a report.
Alongside the bearish action Wednesday came a wildly bullish prediction from the oft-bullish Tom Lee of Fundstrat Global Advisors. Appearing on CNBC, he said approval of a spot bitcoin ETF could see the price jump more than five-fold from current levels.
“I think the demand will be greater than the daily supply of bitcoin, so the clearing price […] is over $150,000, could even be $180,000,” Lee said.
The U.S. Securities and Exchange Commission (SEC) is currently reviewing a slew of spot BTC ETF applications including from traditional finance giant BlackRock. Last week, the agency delayed a decision on Cathie Wood’s ARK21 application.
SOL, DOGE, MATIC lead altcoin fall
Ripple’s XRP, fifth largest digital asset by market cap, buckled below 60 cents for the first time since its mid-July court ruling-inspired rally. It’s now lower by 4.7% over the past 24 hours and 19% over the past month.
“Current price action is marked by unusually low volatility, low levels of leverage and speculative activity,” Matthew Sigel, head of digital asset research at investment manager VanEck, said in an interview with CoinDesk TV. “Falling volatility has been a trend for much of the past year despite the extreme events which led to the bankruptcy of every major crypto lender.”