Bitcoin loses June gains – Will BTC fall under $60K?

Bitcoin and other major cryptocurrencies fell sharply during Asian trading hours, reversing gains from earlier in the week. Bitcoin traded at $61,000 on July 3 as the US inflation forecast worsened.

Also Read: Chinese mining pools control over 50% of Bitcoin hashrate despite ban

BTC’s selling pressure is at an all-time high, and investors fear the worst. One user on X writes, “Liquidity is so low that these kinds of sell-offs can easily push down the price of coins.”

Bitcoin is in a bad trading shape

According to the exchange rate, Bitcoin (BTC) is now worth $60,191.73, down 0.6% from an hour ago and 3.8% from yesterday. Bitcoin is worth 1.9% less now than it was seven days ago.

The value of all crypto by the market cap has dropped by -3.24% in the last 24 hours and by 86.48% in the past year. BTC has a market cap of $1.19 Trillion right now, which means that 50.51% of all cryptocurrencies are Bitcoin.

BTC’s Fear and Greed Index stands at a neutral 50 on Binance.

Data from Lookonchain shows that whales have been moving BTC at alarming rates. The analytical firm reports that a whale deposited 1,023 BTC worth $62.2 million to Binance. In addition, the whale had deposited 1,723 BTC worth $106 million to Binance in the last 24 hours.

Source: Lookonchain – X

As the head of the quantitative Bitcoin and digital asset fund Capriole Investments, Charles Edwards is worried about the latest changes in Bitcoin’s price.

He said that markets had not come to terms with the fact that miners were still in the “capitulation phase.” 

On X, he writes, “Price has not yet reflected the on-chain obliteration. It doesn’t have to happen, time also heals all wounds, but Bitcoin is not patient. Either we’re lucky, and price just consolidates between $60-70K for up to 2 months, or we puke and get a healthy overdue correction.”

Jerome Powell’s comments add worry to the market

BTC’s trading behavior appeared to decline when Jerome Powell, chairman of the United States Federal Reserve, delivered a speech on the economy and monetary policy at an event in Portugal.

He said that the Fed needed more convincing that conditions were suitable to decrease interest rates – a major move that crypto and risk asset enthusiasts are watching for.

Markets have marginally reduced the odds of a rate decrease at the Fed’s Federal Open Market Committee (FOMC) meeting in September. According to CME Group’s FedWatch Tool, the bet rates are still about 65% at the time of writing.

Source: CME Group – Target Rate probabilities for September FOMC meeting

According to Reuters, he stated, “We just want to understand that the levels that we’re seeing are a true reading on what is actually happening with underlying inflation.”

Mt Gox expected BTC movement in July creates FUD

In a Telegram broadcast on Tuesday, Singapore-based QCP Capital expressed concern that bearish sentiment was likely influenced by concerns that significant BTC sales would follow distributions by the defunct Mt. Gox exchange.

The Mt Gox release is also slated to happen this week […] This overhang of up to 140,000 BTC should continue to weigh on markets, especially since the exact release schedule is unknown right now.

QCP Capital 

Mt. Gox will begin distributing assets stolen from clients in a 2014 cyberattack in July 2024, following years of postponing deadlines. The reimbursements will be done in Bitcoin and Bitcoin cash, which may increase selling pressure in both markets, as previously reported.

However, some traders’ long-term positive outlooks remain unchanged, with hopes of a $150,000 surge after the Mt. Gox distribution is done.

Cryptopolitan Reporting by Florence Muchai