Bitcoin approached $58,000 around the Wall Street open on July 12 as markets reacted to the latest U.S. inflation data.
Cointelegraph Markets Pro and TradingView data indicated that Bitcoin’s price improved as the Producer Price Index (PPI) for June exceeded expectations.
The year-on-year PPI was 2.6%, higher than the forecasted 2.3% and 0.1% above the previous month.
“On an unadjusted basis, the index for final demand rose 2.6 percent for the 12 months ended in June, the largest advance since moving up 2.7 percent for the 12 months ended March 2023,” the U.S. Bureau of Labor Statistics reported.
Despite contrasting with the Consumer Price Index (CPI) numbers from July 11, BTC/USD avoided a decline after the PPI release.
Instead, it saw modest gains alongside U.S. stocks, while the dollar weakened.
“So overall PPI is sticky on YoY basis if not higher due to higher prices & lack of supply,” popular trader Skew remarked on X (formerly Twitter). “Increasing energy, food and trade services prices is not a great look.”
Skew pointed out that excluding energy, food, and trade services, the index was “basically flat” and less surprising to markets.
“Initial reaction was DXY & Yields up before lower, this tells me the market is transitioning into expecting a harsh reality when demand continues to buckle,” he concluded.
READ MORE: Bitcoin Long-Term Holders Remain Resilient Amid Deepest Correction of Current Price Cycle
“NQ & ES likely recovering here with hedges coming off. End of day performance will be important.”
The U.S. Dollar Index (DXY) dropped 0.35% on July 12, nearing its lowest levels in over a month.
Skew also described Binance’s spot order book as “pretty healthy.” “Although orderbooks are skew to bid, need to see this translate into market flows being bid,” he noted alongside a liquidity chart.
Other traders called for a stronger move from BTC/USD to signal a longer-term recovery. Popular trader Rekt Capital identified $58,350 as a crucial level for the daily close.
“There’s the rebound Bitcoin needed and price is now challenging that Lower High resistance again,” he informed his X followers, highlighting the PPI reaction with a chart.
“Bitcoin needs to Daily Close above $58350 (black) to break the Lower High and more importantly – position itself for a rally to $60600 (blue).”
Rekt Capital reiterated that BTC/USD had been attempting to break through a downward trendline but faced rejection in recent days.
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The German government resumed selling its Bitcoin holdings on July 12, following the return of some previously transferred BTC to its Bitcoin wallet.
Arkham blockchain data indicates that the German government executed multiple transactions, transferring a total of 3,200 Bitcoin across various platforms. Bitstamp, Kraken, and Coinbase each received 400 BTC, while two unknown addresses received 1,000 BTC and 500 BTC respectively.
Crypto analyst Michaël van de Poppe speculated on X that the remaining Bitcoin, worth approximately $300 million, would likely be sold on July 12.
Historically, large sales by government entities can lead to increased market volatility. However, the careful distribution of Bitcoin across different platforms might help prevent sudden and extreme price swings.
The German government’s wallet, containing Bitcoin seized from a film pirating website in January, has transferred billions of dollars in Bitcoin since June 19, with a noticeable increase in activity at the start of July.
READ MORE: Bitcoin Surges to One-Week Highs Following US Inflation Data Surprise
Starting with 50,000 Bitcoin, the wallet has sold a significant portion of its holdings over the past month. With 5,800 Bitcoin remaining, the German government has sold 44,200 BTC — 88.4% of the original 50,000.
On July 11, the German government’s Bitcoin wallet temporarily fell below 5,000 BTC after transferring approximately $615 million worth of Bitcoin to various cryptocurrency exchanges, including Coinbase, Bitstamp, Kraken, Flow Traders, and two unknown addresses, according to blockchain analytics firm Arkham.
German lawmaker and Bitcoin advocate Joana Cotar criticized the large-scale sale of Bitcoin, suggesting that the cryptocurrency could have been utilized as a safeguard against traditional financial system risks by adopting it as a “strategic reserve currency” instead.
The recent decline in Bitcoin’s price can be attributed to several factors, including Germany’s significant sale of BTC and concerns that Mt. Gox is releasing a substantial amount of Bitcoin worth over $8 billion to its creditors.
This has led to market uncertainty and downward pressure on prices.
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Global cryptocurrency trading is on the rise, with a study from CoinWire predicting industry trading volumes will exceed $108 trillion by the end of 2024.
This estimate represents a 90% increase compared to 2022.
The United States is leading with a projected crypto trading volume surpassing $2 trillion.
While the US may lead in trading volume, Europe dominates in global cryptocurrency transaction value, accounting for 37.32%.
Europe has been proactive in shaping its cryptocurrency industry through regulations, providing clear guidelines for traders and exchanges.
The European Union’s landmark Markets in Crypto-Assets Regulation partially came into effect on June 30, focusing on stablecoins.
Further regulations for crypto asset service providers are expected in December.
This legislative framework, in development since 2020, represents the EU’s first set of uniform market rules for crypto assets.
The survey anticipates Europe’s cryptocurrency trading volume will reach $40.5 trillion in 2024, a 2.7-fold increase from its $15 trillion in 2022.
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Asia follows closely, accounting for 36.17% of the world’s cryptocurrency transaction value.
The study’s conclusions were drawn by analyzing centralized exchanges with trust scores higher than six on CoinGecko.
This analysis considered factors like web traffic by country, supported languages, headquarters location, and trading time zones.
One key finding is that Binance dominates the crypto exchange market in over 100 countries, with a trading volume of $2.77 trillion.
Binance.US also holds a significant presence, though with a lower trading volume of $3.9 billion. This makes Binance the most “widely used” exchange globally.
On July 5, Binance celebrated its seventh anniversary and the milestone of reaching 200 million users worldwide.
Following Binance are OKX and Cex.io, with a presence in 93 and 92 countries, respectively, and trading volumes of $759 billion and $1.83 billion.
Coinbase and Bybit operate in 90 and 87 countries, respectively, with trading volumes of $662 billion and $1.14 trillion.
The rise in global crypto trading and the increasing regulatory clarity in regions like Europe signify a rapidly maturing industry poised for significant growth in the coming years.
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The United States Supreme Court’s decision in Loper Bright vs. Raimondo has significant implications for the cryptocurrency industry.
The ruling, which ended the long-standing Chevron deference, shifts power between the judicial and executive branches of the US government.
Since 1984, Chevron allowed courts to defer to federal agencies in interpreting ambiguous statutes, but the 6–3 decision on June 28 changed that.
“Chevron is overruled,” the court declared.
“This decision impacts many sectors, including technology, finance, healthcare, and the environment.
Jim Lundy, a securities enforcement and litigation partner at Foley & Lardner, commented, “The Supreme Court did the appropriate thing with this ruling because the Chevron deference had started to stretch too far for certain agencies.”
Joshua Simmons, a partner at Wiley Rein, noted the ruling’s significant long-term impact, especially for the crypto and blockchain sector.
“The decision takes away the deference that agencies had,” Simmons said, suggesting that more companies will challenge agency decisions and face a more level playing field.
Joanna Wasick, a litigation partner at BakerHostetler, highlighted how crypto was referenced during oral arguments.
“Loper Bright’s attorney, Paul Clement, pointed directly to crypto as an example of how the SEC [Securities and Exchange Commission] oversteps its authority.”
This ruling could push Congress to pass crypto reform legislation and encourage companies to bring lawsuits.
Peter Van Valkenburgh wrote in a Coin Center blog, “Without Chevron, a judge in SEC v. Consensys need not defer to the SEC’s own understanding of what exactly a ‘broker’ is.” Uniswap Labs also referenced Loper Bright, urging the SEC to drop its proposal on decentralized finance.
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Other federal agencies might also feel Loper Bright’s impact. Custodia, a state-chartered crypto bank, recently appealed the Federal Reserve’s decision to deny it a Master Account, potentially benefiting from this ruling.
Kathryn Haun called the ruling “the most significant court case for technology policy in the U.S. in years.”
Lundy emphasized that while the ruling doesn’t eliminate regulatory agencies’ rulemaking abilities, it removes Chevron deference in ambiguous cases.
This change may not be a game-changer historically but will influence how agencies like the SEC and CFTC craft rules for the cryptocurrency industry.
In Europe, the impact of Loper Bright is seen as potentially reducing regulatory barriers, similar to the EU’s MiCA framework.
Annabelle Rau of McDermott Will & Emery suggested that a more predictable regulatory landscape could encourage innovation in digital asset tokenization.
Overall, while the ruling alters the game, its full impact will unfold over time through further litigation and challenges.
As Lundy noted, the defense bar will likely explore new ways to challenge SEC and CFTC rulemakings for the cryptocurrency and blockchain industries.
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MicroStrategy, a Nasdaq-listed business intelligence firm, has announced a 10-for-1 stock split of its Class A and B common stock.
This decision, revealed on July 11, aims to increase stock accessibility for both investors and employees.
The split will be executed as a stock dividend, providing stockholders with nine additional shares for each share they currently own.
The distribution of these additional shares is scheduled for after trading closes on August 7, 2024. Trading on the split-adjusted stock will begin on August 8, 2024. Despite this change, the voting rights of stockholders will remain unchanged.
MicroStrategy also emphasized its identity as a Bitcoin development company.
The firm is committed to enhancing the Bitcoin network through its financial market activities.
It has made Bitcoin its primary treasury reserve asset, underscoring its strategic focus on integrating Bitcoin into its operations. The company stated:
“As an operating business, we are able to use cashflows as well as proceeds from equity and debt financings to accumulate Bitcoin, which serves as our primary treasury reserve asset.”
READ MORE: Mt. Gox Begins Long-Awaited Bitcoin Repayments, Sparking Market Volatility
In addition to its Bitcoin initiatives, MicroStrategy is also involved in developing artificial intelligence software analytics solutions.
This announcement follows the company’s plan to purchase more Bitcoin.
On June 13, MicroStrategy disclosed its intention to conduct a $500 million stock sale to fund additional Bitcoin purchases.
Subsequently, the company announced a plan to offer convertible senior notes due in 2032.
Following these announcements, on June 14, MicroStrategy increased the stock sale volume to $700 million and confirmed that the notes would be sold to qualified investors.
Nearly $800 million was eventually raised, with $786 million allocated to purchase 11,931 BTC.
With this acquisition, MicroStrategy’s Bitcoin holdings total 226,331 BTC, valued at approximately $13.2 billion.
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Bitcoin experienced a notable spike to new one-week highs on July 11 following a bullish surprise from United States macroeconomic data.
Data from Cointelegraph Markets Pro and TradingView revealed a rapid yet brief climb in Bitcoin’s price to $59,516 on Bitstamp.
This surge came after the release of June’s US Consumer Price Index (CPI) data, indicating inflation slowing more than anticipated.
Both year-on-year and month-on-month CPI figures were 0.1% lower than expected, resulting in a positive response from both crypto and US stock markets.
“The all items index rose 3.0 percent for the 12 months ending June, a smaller increase than the 3.3-percent increase for the 12 months ending May,” a press release from the US Bureau of Labor Statistics confirmed.
“The all items less food and energy index rose 3.3 percent over the last 12 months and was the smallest 12-month increase in that index since April 2021.”
Despite this, the initial gains were short-lived, with BTC/USD quickly losing the $1,000 it had initially gained.
“Inflation coming down faster than expected. Local higher high for Bitcoin in response,” popular trader Jelle summarized on X.
“Time to let the dust settle, but safe to say it’s much stronger than it was at the start of the month. Reclaim $60,000 and things will look much better.”
The $60,000 level remained a critical target for market participants. Fellow trader Wolf identified it as a key resistance point, citing the 21-week exponential moving average at $60,900.
“The 60-61.6k range is where the strongest resistance lies, due to horizontal and weekly 21EMA barriers,” he told X followers.
“If this level is cleared, the bulls will regain control.”
Other significant levels include the 200-day moving average and the short-term holder cost basis, the latter at $64,088, according to Look Into Bitcoin.
Short-term holders, the more speculative Bitcoin investors, held up to 2.8 million BTC at a loss when prices fell to four-month lows of $53,500 last week.
Caution remained as markets anticipated the distribution of coins from the defunct exchange Mt. Gox.
Crypto commentator Zen suggested a potential BTC price drop as these funds hit exchanges, requiring two days for market rebalancing.
Jamie Coutts, chief crypto analyst at Real Vision, saw this as ultimately beneficial.
“While painful in the short term, the distributions of the Mt. Gox reserve and government sales remove the annoying supply overhang, helping distribute coins to a wider array of holders, thereby growing the network and leaving Bitcoin even better off than before,” he wrote on X on July 10.
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Bitcoin long-term holders are showing remarkable resilience amid the deepest correction of the current BTC price cycle, according to crypto analytics firm Glassnode.
In the latest edition of its weekly newsletter, The Week Onchain, Glassnode highlighted the strength of Bitcoin holders despite significant market downturns.
Bitcoin is facing its most substantial drawdown of the current bull market, yet its steadfast “diamond hands” are not showing signs of panic.
Glassnode noted, “If we look at performance indexed to the date of the Bitcoin halving, we can see that the current cycle is one of the worst performing.”
This is despite the market reaching a new cyclical all-time high before the halving event in April, an unprecedented occurrence.
Unlike previous well-known capitulation events, Glassnode’s analysis reveals that long-term holders are steadfast, even with BTC/USD hitting four-month lows of $53,500.
The newsletter stated, “Looking at losses locked in by both Long-Term and Short-Term Holders, we note that the loss-taking events this week account for less than 36% of the total capital flows across the Bitcoin network.”
Significant capitulation events in September 2019, March 2020, and May 2021 saw losses exceeding 60% of capital flows over several weeks, with contributions from both long-term and short-term holders.
Long-term holders are defined as those holding Bitcoin for more than 155 days, while short-term holders have it for less, indicating a more speculative nature.
Glassnode’s chart shows the lack of long-term holder participation in onchain selling at a loss during the BTC price drawdown.
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They stated, “Following 18 months of up-only price action after the FTX implosion and 3 months of apathetic sideways trading, the market has endured its deepest correction of the cycle.”
Despite this, the drawdowns in the current cycle remain favorable compared to historical cycles, indicating a robust underlying market structure.
As Cointelegraph reported, short-term holders and day traders are particularly affected as profit margins turn negative.
At $53,500 lows, short-term holders held nearly 2.8 million BTC, or 14.2% of the total supply, at an unrealized loss.
Concerns are also rising among miners, with a hashrate capitulation phase reminiscent of the bear market bottom in late 2022.
Charles Edwards, founder of Capriole Investments, highlighted that the recent drawdown has been preceded by a Hash Ribbon Capitulation signal, suggesting that a buy signal could still be weeks away.
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In a long-awaited move, Mt. Gox, the infamous Bitcoin exchange that collapsed in 2014, has finally started repaying its creditors.
This resolution to one of crypto’s most notorious scandals is not just closing a chapter to one of Bitcoin’s darkest hours but is also actively shaping the asset’s market dynamics in real time.
On July 5, Nobuaki Kobayashi, the rehabilitation trustee for Mt. Gox, announced the commencement of debt repayments to creditors in Bitcoin and Bitcoin Cash.
The repayments are facilitated through a complex network of exchanges, with each entity playing a crucial role in distributing the funds.
The scale of the repayments is staggering. Approximately 47,288 BTC, valued at roughly $2.7 billion, has already been moved from Mt. Gox-associated wallets to new addresses.
This is just the beginning, with a total of around 140,000 BTC — worth $9 billion at current prices — set to be returned to the victims in the coming weeks.
The sheer magnitude of the transfers has put the entire crypto market on edge, with traders and investors closely monitoring every movement.
On paper, the repayment process seems to be quite a logistical feat, with five exchanges — Bitbank, SBI VC Trade, Bitstamp, Kraken, and BitGo — tasked with distributing the funds. Each exchange has its own timeline for processing the payouts, ranging from immediate distribution to a 90-day window.
Both Japanese exchanges — Bitbank and SBI VC Trade — have already completed their distributions, processing the payments within hours of receiving the funds.
This swift action relieved creditors but also contributed to the ongoing market volatility as some recipients quickly sold their newly acquired Bitcoin.
Bitstamp also pledged to expedite its distributions, with exchange officials stating that it is committed to compensating investors earlier than its given 60-day window.
The immediate impact on Bitcoin’s price was swift. As news of the repayments spread, Bitcoin plummeted from approximately $62,000 to as low as $53,600 on July 4 — a 10% drop in a matter of hours.
This sharp decline triggered a wave of liquidations across the crypto market, with over $425 million in leveraged positions being wiped out.
The volatility wasn’t limited to Bitcoin; the entire cryptocurrency market felt the tremors, with many altcoins experiencing double-digit percentage drops.
However, the market’s reaction wasn’t solely due to Mt. Gox. Coinciding with these repayments was news of the German government offloading hundreds of millions of dollars worth of Bitcoin seized from criminal activities.
On July 8, a German government-labeled crypto wallet sold around $900 million worth of Bitcoin, transferring roughly 16,309 BTC in multiple transactions to various external addresses, marking its largest single-day Bitcoin liquidation.
Some of the transfers were directed to crypto exchanges such as Bitstamp, Coinbase, and Kraken, as well as market makers such as Flow Traders and Cumberland DRW.
With the German government now around halfway through its selling spree, reducing its holdings to 23,788 BTC from 50,000 BTC, traders expect Bitcoin prices to stabilize and potentially climb again once the immediate selling pressure eases.
Founded in 2010 by Jed McCaleb and later sold to Mark Karpelès in 2011, Mt. Gox quickly became the world’s largest Bitcoin exchange, handling a staggering 70% of all global BTC transactions at its peak.
This dominance made it the go-to platform for early Bitcoin adopters and played a crucial role in establishing Bitcoin’s legitimacy in its formative years.
However, in February 2014, Mt. Gox suspended all Bitcoin withdrawals, citing technical issues.
The truth soon emerged that the exchange had lost approximately 850,000 BTC in a long-standing security breach.
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This loss, valued at roughly $450 million at the time, would be worth over $48 billion at today’s prices.
The event sent shockwaves through the crypto community and severely damaged Bitcoin’s reputation, setting back mainstream adoption efforts by years.
Mt. Gox filed for bankruptcy, leaving thousands of customers in limbo.
In 2018, the case shifted to civil rehabilitation, offering a glimmer of hope to creditors.
In 2019, Karpeles was convicted of falsifying financial records, adding yet another layer to the complex legal saga.
The commencement of Mt. Gox repayments has injected a new level of volatility into an already dynamic crypto market.
However, as the dust settles, a more nuanced picture seems to be emerging.
For instance, Bitcoin has shown immense resilience since July 5, rebounding to around $59,000 after its initial plunge to $53,600.
The market’s ability to absorb such a large influx of supply speaks to the increased liquidity and maturity of the cryptocurrency ecosystem compared to its state during Mt. Gox’s collapse.
Some analysts believe that much of this selling pressure was already “priced in” before the event itself, thus explaining the relatively quick price recovery.
Furthermore, some large investors viewed the price dip as a buying opportunity, as evidenced by increased inflows into US-based spot Bitcoin exchange-traded funds (ETFs).
This institutional support has counterbalanced the selling pressure while simultaneously demonstrating BTC’s acceptance within the financial mainstream.
The broader crypto market also shows signs of decoupling from Bitcoin’s movements. Ether, for instance, has stayed above the $3,000 mark despite BTC market volatility.
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United States-based spot Bitcoin exchange-traded funds (ETFs) have experienced their largest day of net inflows in over a month, even as the crypto market struggles. On July 8, eleven funds collectively amassed $295 million in inflows.
This marked the first time in three trading weeks that net inflows across all funds were positive.
BlackRock’s iShares Bitcoin Trust ETF led the pack with a significant daily inflow of $187.2 million.
Fidelity’s Wise Origin Bitcoin Fund followed, garnering $61.5 million.
Additionally, the Grayscale Bitcoin Trust saw a rare day of positive price action, achieving $25.1 million in inflows.
READ MORE: Bitcoin Mining Difficulty Drops Over 5% to Quarterly Low, Impacting Profitability Thresholds
This surge represents the most substantial day of inflows since June 5, when ETFs attracted over $488 million in new capital.
These developments occur amid broader market concerns related to significant Bitcoin sales by the German government and upcoming repayments to Mt. Gox creditors.
To date, the German government has moved over 26,200 BTC — valued at $1.5 billion at current prices — to exchanges and market makers.
According to Arkham Intelligence data, the government still holds 27,460 BTC, worth approximately $1.57 billion, in reserve.
Simultaneously, there are apprehensions about the potential market impact of $8.5 billion in Bitcoin as the defunct Japanese crypto exchange Mt. Gox starts repaying creditors who lost funds in a 2014 hack.
However, some analysts suggest that concerns over Mt. Gox Bitcoin sales might be exaggerated.
The price of Bitcoin has seen a decline over the past two trading weeks, dipping to $53,600 on July 5. This marks the first time the asset has traded below $54,000 since February.
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The wallet labeled “German Government (BKA)” on Arkham Intelligence has recently added 6,000 more Bitcoin, valued at $354 million, in preparation for another round of BTC sell-offs.
So far, 5,853.409 Bitcoin have been transferred to addresses associated with exchanges like Coinbase, Kraken, Flow Traders, and other unidentified or unconfirmed addresses.
The next phase involves offloading approximately $342 million worth of BTC.
This follows the previous distribution of 3,100 BTC, valued at $178 million at the time, on July 9.
Additionally, the wallet withdrew 1,700 BTC, worth $91.78 million, from Bitstamp, suggesting difficulties in selling them on the exchange.
As of July 9, the wallet’s holdings were about 26,000 BTC, worth roughly $1.5 billion, with a linked address holding 4,800 BTC.
By July 10, the holdings had decreased to approximately 18,110 BTC, worth $1.06 billion, a drop of over $400 million.
Dr. Lennart Ante, CEO of Blockchain Research Lab, told Cointelegraph that investigators from the federal state of Saxony seized the BTC funds.
He explained, “The funds are said to have originated from the illegal streaming portal Movie2k, and one of the defendants facilitated the voluntary transfer of the funds.”
“The Public Prosecutor General’s Office has sole authority over the confiscated Bitcoins.
The BKA (German State Police) just provides the wallets through which the transactions are processed,” Ante added.
He further detailed that the proceeds go to the state budget of the Free State of Saxony, but filmmakers, as victims of Movie2k, could claim parts of it, pending court decisions.
READ MORE: German Government Continues Bitcoin Sell-Off, Shifts $178 Million in BTC in One Hour
Despite the sell-off and over $1 billion in BTC entering the market, Bitcoin’s price has rebounded to highs of $58,000 after dipping to $53,900.
Ante noted that the ongoing events raise questions about the efficiency of the Saxon government’s sales strategy, suggesting auctions or OTC deals might be more effective.
Out of nearly 50,000 BTC seized, only about 13,110 BTC, worth $770 million, remain, resulting in the German government losing its BTC billionaire status.
The BTC sell-off aligns with the Mt. Gox initiation of BTC and Bitcoin Cash (BCH) repayments to creditors.
Ante remarked that this event might soon be overshadowed by new developments like the Mt. Gox payouts, which could lead to a broader distribution of Bitcoin ownership, potentially benefiting Bitcoin in the medium term.
As of now, BTC’s price stands at $58,545, with the total cryptocurrency market capitalization at $2.15 trillion, up 1.39% in the last 24 hours.
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