The slight rebound in the cryptocurrencies came to an end and fell by up to 8%. The Bitcoin puts the $60,000 mark at risk, while falling 3% in the last 24 hours. What influenced the market fall?
The 5 reasons that explain the fall of Bitcoin
The first and most important of all, that the exchange traded funds (ETFs) of spot BTC have returned to the red after five days of net inflows. On Tuesday, the 10 bitcoin funds experienced a net outflow of $13.7 million, led by losses of $32.4 million from Grayscale Bitcoin Trust (GBTC), which andhas lost more than 18.5 billion dollars since its conversion to a spot ETF in early January.
This, after the exchange-traded funds lost more than $900 million in JuneAnalysts such as those at QCP Capital point out that there are movements that lead them to think that it could be a good month for these investment products, while others, such as Samer Hasn, of XS.com, question the ability of these ETFs to maintain the bullish momentum of the market.
On the other hand, the growth Market nervousness over Mt. Gox’s refund program. Late last month, those overseeing the liquidation process of the defunct cryptocurrency exchange announced that in July they would begin returning the more than 140,000 stolen during a cyberattack in 2014, valued at approximately $9 billion.
Many analysts think that a large part of the creditors will sell their bitcoin once they receive it, since their tokens have appreciated exponentially in recent years. If these hypotheses were confirmed, there could be a an excess of supply in the market that would cause prices to fall even further of the queen cryptocurrency.
Thirdly and related to this, Germany has again sold part of its bitcoin holdings.
All these factors have worsened investor sentiment. in what seemed to be a rather promising start to July. After falling sharply in June, Investors were hopeful that the trend would soon reverse, as the reigning cryptocurrency usually rebounds in the seventh month of the year, especially after a bearish June.
What can happen to the price of Bitcoin?
Technically, César Nuez, an analyst at Bolsamanía, points out that bitcoin is holding “close to the support it presents at $56,910.” “These prices are important since the support offered by the 200-session average is very close,” he said.
“To confirm a continuation of the rises we should wait for the surpassing all-time highs which is at US$74,415. If these prices are exceeded, it would confirm the end of the lateral movement of the last few months and would give us a first target for an increase of US$77,000,” he concluded.
How other cryptocurrencies operate
Elsewhere on the market, altcoins are also in the red. The biggest drop is led by Solana with a loss of 8.3%, followed by Polkadot -8.1%, Avalanche (-6.2%) and Dogecoin (-5.6%).
Source: Ambito
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