Bitcoin
Bitcoin Drops to $60K, Threatening to Derail Prices of Ether, Solana, XRP, Dogecoin, and Shiba Inu ⋆ ZyCrypto
After showing signs of promise in early July, the price of Bitcoin (BTC) has fallen back to the $60,000 mark, while other cryptocurrencies have also seen declines.
According to 24-hour charts, the largest cryptocurrency is down nearly 5% to settle at $60,000 as traders scan the horizons for telltale signs of further selling pressure. While it’s easy to consider the $60,000 mark as a potential support level for BTC, skeptics are bracing for a steeper drop in the coming days.
In early June, BTC surpassed expectations by circling around $63K, riding the waves of positive macro liquidity shift. The charts painted a promising picture, with Rekt Capital noting on X that the asset could surge as high as $71k following a correlation with USD liquidity.
“Biggest spike in Fed Liquidity Rate of Change in 15 months,” said Cole Garner, a market analyst. “Last time this happened, bitcoin went up 40% in a week. I’m not assuming a repeat, but you love to see that.”
However, the positive sentiments were short-lived after the asset’s sharp decline over 24 hours. Several analysts attempted to rationalize the decline with a cross-section pointing to the entry release of Mt. Gox’s $9 billion worth of bitcoins to creditors.
The word on Cryptoville is that creditors, upon receiving their assets, will embark on a sell-off that is expected to drive prices down in June. Proponents of this theory point to the massive gains made by BTC since the 2014 hack as reasons for a mass liquidation, with Gemini’s recent payout to creditors underscoring the fact.
Outside of Mt. Gox, uncertainty surrounding US interest rates has weighed heavily on BTC, but official statements from the Federal Reserve are expected to be released on Wednesday.
Several on-chain indicators, specifically the net unrealized profit and loss (NUPL) and adjusted asset-level net income ratio (SOPA), are predicting a bleak July for BTC.
Sinking the rest of the markets
Bitcoin’s decline appears to be affecting the broader cryptocurrency market, with major altcoins seeing their fair share of losses. In the same 24-hour window, Ethereum (ETH) fell by 3%, while BCH and PEPE suffered similar losses to the dismay of investors.
The bloodbath has left the entire virtual currency market cap at $2.26 trillion, but despite the declining metrics, daily trading volumes have increased by 6.16% over the past day. The biggest winners appear to be altcoins that have held their ground by trading sideways, including SOL and XRP, assets Sun bathing in its recent regulatory and legal victories.