Bitcoin (BTC) had one of its best moments in late August and early September of this year when it reclaimed the $81,000 price level. However, BTC’s upswing seems to have cooled off. The asset is showing signs of entering a sideways trajectory and is facing substantial resistance at the $78,000-$80,000 price range. Let’s discuss what this means for Bitcoin (BTC) and what could happen next for the asset.
What Next For Bitcoin? Will It Continue Moving Sideways Or Will It Face A Correction?
The cryptocurrency market saw an upswing in late August 2026 due to two developments. The first was President Trump’s White House cryptocurrency event, during which the President said that the US plans on buying a large number of Bitcoin (BTC) and other cryptocurrencies. The statement likely led to a surge in investor confidence. The second development was the US Treasury’s decision to increase bond buy backs which led to a rise in liquidity. Increased liquidity also helped the market gain momentum.
The cryptocurrency market faced another bullish phase in early September when Federal Reserve Governor Christopher Waller said that he would support keeping interest rates unchanged in the September FOMC (Federal Open Market Committee) meeting. However, Kevin Warsh’s hawkish speech at the Jackson Hole meeting may have changed the narrative. Warsh emphasized on rising inflation, which has led to many experts anticipating a rate hike after the Fed’s meeting. Higher rates may negatively impact the cryptocurrency market as investors divest from high-risk assets. Poor jobs data in August has further strengthened the argument for a rate hike later this month.
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If rates go up, there is a high chance that Bitcoin (BTC) will face another correction. The original cryptocurrency could even fall below the $70,000 price level if investor feel increased pressure.