What Does It Mean for Bitcoin If It Cannot Hold onto the $65K Level?

Bitcoin (BTC) briefly hit the $65,000 level on Wednesday but then fell to an average of $64,500 (BTC/USD) since then. Is BTC struggling with this key level?

It looks like it, and that could be a problem for the coin’s attempts to get back to its previous level above $70,000 and set a new record high. That certainly throws a wrench into any price predictions that Bitcoin will soon hit $75,000 or $80,000. The coin is having a tough time getting above the psychologically important $65K level at the moment.

As long as Bitcoin struggles here, it will be hindered from experiencing a bull run, and interest in the token is going to die down. Already this year, we have seen interest wane in internet searches for the cryptocurrency coin. In the last three months, searches online for the term “bitcoin” have dipped by more than 40%. That period coincided with Bitcoin’s fall after hitting a record high. Now that the coin appears to no longer be setting records for the time being, interest has diminished.

Bitcoin Needs New Momentum

The token did pick up some momentum recently after an assassination attempt was made on Donld Trump’s life. Much of that interest has built up in anticipation that he might win the presidency and provide government support for Bitcoin and the wider crypto market. If Trump does win, that could mean big things for crypto. Current President Joe Biden has shown that he supports stronger, stricter legislation for decentralized currencies.

We could see new impetus for Bitcoin from the soon-to-be-released crypto ETFs. These will come onto the market on July 23rd. When those ETFs were approved by the US Securities and Exchange Commission, Bitcoin and a few other cryptos shot up temporarily. A similar but stronger reaction is expected from the market when they finally release.

Bitcoin could also gain momentum if US inflation improves or if the Federal Reserve cuts interest rates. We may see interest rate cuts in late August or September.   

Any one of these factors could help push Bitcoin back toward $70,000 and produce talk of a new record high. But investors need to keep in mind that there are still Mt. Gox exchange repayments to be made to Bitcoin investors, which could flood the market in the millions of dollars and devalue Bitcoin like they did recently with the last round for repayments.