Bitcoin (BTC) posted a local top of $24,600 on July 30 before closing three consecutive daily red candles. Peak to trough losses over this period came in at $1,800, or 7%.
Today, August 3, sees some reprieve, as buyers give rise to a 3% upside swing. As of writing, BTC was trading at $23,344, while the rest of the market was trading flat with a slight upside bias.
According to Bloomberg News, a consideration of recent crypto price action was the heightening tensions between the U.S. and China over House Speaker Nancy Pelosi’s visit to Taiwan.
Weeks before, the Chinese hierarchy had warned Pelosi to cancel the trip. However, on August 2, the House Speaker touched down in Taiwan, stoking geopolitical tensions.
The threat of escalation between the two superpowers led investors to ditch stocks and U.S equity futures. Bitcoin also suffered a minor sell-off, dropping 3% on the day before closing at $22,900.
Since July 13, BTC has been trending upwards after making a local bottom at $18,900. This run peaked just short of $25,000 during the weekend, as tensions between the U.S. and China intensified over Pelosi’s Taiwan visit. Bloomberg noted that this was Bitcoin’s best run since October 2021.