On July 4, Bitcoin‘s price briefly dropped to $57,874 on Coinbase, marking its first dip below $58,000 in over two months.
Since then, it has stabilized at $58,964 but remains down 3.4% for the week, according to TradingView.
This slump is attributed to the liquidation of leveraged long positions.
Data from CoinGlass reveals that more than $54.9 million in Bitcoin long positions were liquidated within the past 24 hours.
“Nearly $60 million in Bitcoin longs have been wiped in the last 24 hours,” states CoinGlass.
Ether traders also faced significant losses ahead of the anticipated launch of several spot Ether ETFs, expected by mid-July. In total, $57.9 million in Ether long positions were liquidated during the same period.
Much of the blame for Bitcoin’s broader price pullback is attributed to the defunct Japanese crypto exchange Mt. Gox, which is set to begin repayments of approximately $8.5 billion worth of BTC to its creditors starting in early July.
However, some analysts believe these repayments may not have as severe an impact on Bitcoin as anticipated.
Other major cryptocurrencies and altcoins also experienced sharp declines during Bitcoin’s brief dip. Ether dropped 4.5%, briefly hitting $3,145 during a sharp sell-off at 2:00 am UTC on July 4.
BNB fell 6%, decreasing from $573 to $539 at the time of writing. Solana saw a 10.3% decline, falling from a weekly high of $154 to $136.
Meanwhile, mentions of “buy the dip” surged across social media platforms.
The use of this phrase has doubled on Reddit, X, and 4Chan over the last two days.
These recent movements in the crypto market highlight the volatility and significant impact of leveraged positions on price fluctuations.
The upcoming Mt. Gox repayments and the launch of Ether ETFs are key events that market participants are closely monitoring.
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A cryptocurrency wallet associated with the German government transferred over 3,000 Bitcoin, valued at more than $172 million, to various crypto exchanges and a separate wallet.
On July 4, blockchain investigator PeckShieldAlert reported a substantial outbound transfer of 1,300 Bitcoin from a wallet labeled as belonging to the “German Government (BKA).”
These Bitcoin, worth $75 million, were distributed among three major crypto exchanges: Coinbase, Kraken, and Bitstamp.
Further investigation by Cointelegraph revealed that the German government wallet also transferred an additional 1,700 BTC to a different wallet address simultaneously.
The PeckShield team later confirmed this to Cointelegraph, stating:
“Total 3K out (from German gov’t labeled wallet), including 1.3K -> CEXs and 1.7K -> (to a wallet address) 139PoPE1bKQam8QJjhVjYDP47f3VH7ybVu.”
According to data from onchain analytics platform Arkham Intelligence, while the initial 1,300 BTC were sent to centralized exchanges, the remaining 1,700 BTC were moved to a separate cryptocurrency wallet.
Over the last two weeks, the German government has transferred more than 3,000 BTC to various exchanges.
These significant transfers, alongside ongoing movements from the United States government and the approaching Mt. Gox repayments, pose a potential increase in selling pressure on Bitcoin.
Since February 2024, the wallet labeled as the German government’s has held 50,000 BTC, gradually transferring a significant portion of its holdings over the past few months.
Governments, including Germany, have confiscated Bitcoin and other digital assets linked to criminal activities and periodically auction off these seized assets.
In a notable precedent, the United States government has sold a large portion of Bitcoin seized from the notorious dark web marketplace Silk Road.
In 2014, Tim Draper, an American entrepreneur and Bitcoin advocate, purchased 29,656 BTC from the Silk Road seizure in an auction conducted by U.S. marshals.
These ongoing transactions highlight the continued involvement of government entities in the cryptocurrency market and their efforts to manage and liquidate seized digital assets.
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Experts at 10x Research predict Bitcoin is set to fall below $57,000 from its current level of over $60,000 on July 4.
They believe this sharp decline may just be the beginning, potentially dropping further to $50,000. This marks a significant shift in market sentiment, attributed to a decrease in buy flows and an acceleration in sell flows.
Markus Thielen, an analyst at 10x Research, commented on the situation:
“Our data from early June already hinted at an overbought market ripe for correction.”
The sudden 5.44% fall in Bitcoin’s price has significantly impacted investor sentiment and market liquidity, with Bitcoin’s market capitalization now at $1.1 billion and a 57% increase in trading volume.
The breaking of the $60,000 benchmark is critical for Bitcoin miners and spot Bitcoin ETF buyers.
According to the 10x Research report, this price decline “could accelerate as support gets broken and sellers scramble to find liquidity.”
READ MORE: Bitcoin Drops Below $60,000 Amid Potential $9 Billion Mt. Gox Payout and Whale Activity
This sell-off coincides with the anticipated Mt. Gox repayments of $8.5 billion worth of BTC, which were expected to begin in July.
The 10x Research report noted that after breaking the $60,000 support, “only ill-informed traders are willing to buy here.”
The report maintains a cautious outlook for Bitcoin’s price, advising traders to prioritize risk management in anticipation of continued volatility. Thielen emphasized:
“We warned that this was not the time to be complacent.”
Additionally, a recent analysis from IT Tech indicates the downward trend is due to long-term holders cashing in on substantial profits.
On July 3, the spent output profit ratio (SOPR) from long-term holders exceeded a value of 10, meaning BTC was sold for at least 10 times the initial purchase price.
According to this analysis, long-term BTC holders, who typically retain their holdings for five to seven years, have contributed to the increased selling pressure in the market.
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On July 4 bitcoin experienced a dip of over 2%, testing a key support line for the first time since October 2023.
Data from Cointelegraph Markets Pro and TradingView revealed new local lows of $57,885 on Bitstamp following the latest daily close.
This decline was driven by a lack of positive sentiment and consistent selling pressure from spot markets, creating a challenging environment for Bitcoin bulls.
CoinGlass reported that 24-hour Bitcoin long liquidations approached $60 million at the time of writing.
Popular trader Skew noted that BTC/USD had crossed its 200-day moving average (MA) for the first time in ten months.
“So far since trend rejection & reversal around $63.8K spot selling has been the main driver of this trend,” he explained on X.
“So in order for this HTF MA to actually act as a systematic trigger for the market we need to see market demand & reversal signs. Else volatility & momentum pick up to the downside.”
At the time of writing, the 200-day MA was at $58,400, slightly below the spot price after a brief low timeframe bounce.
READ MORE: Bitcoin Drops Below $60,000 Amid Potential $9 Billion Mt. Gox Payout and Whale Activity
Looking at the broader picture, trading suite DecenTrader highlighted a significant amount of long liquidations closer to $50,000 if the price continues to decline.
“If Bitcoin does breakdown then $51k – $52k remains the area where there is a significant amount of 3x, 5x, and 10x longs liquidity. To the upside, the shorts liquidity is at $76k-78k,” it noted.
Charles Edwards, founder of Capriole Investments, pointed to clear factors influencing Bitcoin’s recent downside.
Alongside data from on-chain analytics firm Glassnode, he observed significant sell-side pressure throughout the year.
The launch of United States spot Bitcoin exchange-traded funds (ETFs) in January had failed to absorb this pressure.
“This is why we haven’t mooned yet. Saylor, Michael Dell, ETFs. It’s all noise,” he told his followers on X.
“When you look at the data of the 4 most important players in Bitcoin, we have net flows equivalent to $24B being dumped on the market in 2024.”
Edwards emphasized that ETFs are not the only demand factor in the current market.
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Marathon Digital Holdings, the world’s largest Bitcoin mining company, has not sold any of its Bitcoin holdings over the past month despite a prolonged downtrend in Bitcoin prices.
According to the company’s operations report published on July 3, Marathon held 18,536 BTC worth over $1.1 billion as of June.
Marathon aims to strengthen its Bitcoin reserves through market purchases and other strategies to boost its Bitcoin yield. However, the firm noted that it might sell some of its Bitcoin in the future:
“MARA opted not to sell any bitcoin in June.
“The Company still intends to sell a portion of its bitcoin holdings in future periods to support monthly operations, manage its treasury, and for general corporate purposes.”
The selling patterns of major Bitcoin holders, including mining firms, can significantly impact Bitcoin’s price.
The upcoming 2024 Bitcoin halving, which will reduce block rewards by half, might compel miners to sell more Bitcoin.
Marathon Digital, valued at over $6.25 billion, surpasses CleanSpark, the second-largest Bitcoin mining firm with a market capitalization of $3.85 billion, by 62%.
Marathon Digital has doubled its operational hashrate to 26.3 exahashes (EH/s) in June, thanks primarily to improvements at its Ellendale facility, which became fully operational in early July.
CEO and chairman Fred Thiel stated:
“Our proprietary mining pool outperformed, capturing 158 blocks during the month, a 10% increase over last year.”
Marathon’s goal is to achieve a hashrate of 50 EH/s by the end of 2024.
READ MORE: Fetch AI Price Prediction: Major Surge Anticipated Amid AI Crypto Merger and Market Optimism
Thiel highlighted the optimization of new sites with immersion cooling technology and the latest hardware, affirming the company’s path to meet this target:
“Domestically, our team continues to optimize our recently acquired sites with immersion cooling technology and the latest generation hardware.
“With these advancements and the expansion of our fleet, we remain on track to reach our target of 50 EH/s by the end of this year.”
Marathon is also pioneering the use of Bitcoin mining for renewable heating. In Finland’s Satakunta region, Marathon launched a 2-megawatt pilot project utilizing “district heating” to warm a town of 11,000 residents.
This method leverages the excess heat produced by mining rigs, offering a sustainable and cost-effective heating solution.
Thiel emphasized the benefits of integrating digital asset compute with district heating, which could reduce carbon emissions, lower costs, and minimize waste heat.
Marathon aims to expand its global presence and support the energy transformation through such innovative projects:
“Integrating digital asset compute with district heating can reduce carbon emissions, lower costs, and minimize waste heat, leading to enhanced sustainability and economic savings for both industries and end-users.
“We look forward to expanding our global presence as a leader in leveraging digital asset compute to support the energy transformation.”
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On July 3, Bitcoin‘s price dipped below the significant $60,000 mark, sparking concerns of extended price consolidation as the potential release of $9 billion in BTC from Mt. Gox looms.
Bitcoin dropped 4.2% in the 24 hours preceding 10:33 am UTC on July 3, reaching a low of $59,600. According to CoinMarketCap, the cryptocurrency is down 1.8% over the week.
Since June, Bitcoin has been in a downtrend, marking an almost 18% decline in the second quarter of 2024.
Investors have been eagerly awaiting a breakout above $70,000 to trigger new all-time highs, but falling below $60,000 could signal a prolonged price correction.
The potential start of repayments to Mt. Gox creditors might be contributing to Bitcoin’s decline.
The defunct exchange may have begun repaying creditors, as suggested by a Bitcoin transfer volume chart for tokens last moved between seven to ten years ago, shared by Charles Edwards, founder of Capriole Investments. Edwards noted in a July 2 X post:
“The entire history of this chart has disappeared because an enormous sum of Bitcoin moved on-chain, 10X more than the previous highs. $9B.
“But by who? Mt. Gox. It looks like those distributions really are coming.”
Mt. Gox owes over $9.4 billion in Bitcoin to about 127,000 creditors who have waited for over a decade to recover their funds. Many investors might cash out after years of untouched profits.
READ MORE: Fetch AI Price Prediction: Major Surge Anticipated Amid AI Crypto Merger and Market Optimism
However, the $9 billion from Mt. Gox could be offset by institutional inflows to U.S.-based spot Bitcoin exchange-traded funds (ETFs).
Since their January launch, these ETFs have amassed over $52.5 billion in BTC, according to Dune.
Questions arise about whether Bitcoin whales influenced the price drop below $60,000.
One large Bitcoin holder sold $180 million worth of Bitcoin within three minutes, an unusually high amount for such a brief period. Popular industry watcher Zaheer highlighted this large sale in a July 3 X post.
Further contributing to the decline, another unknown whale transferred 1,723 BTC worth over $168 million to Binance within the past 24 hours, according to Lookonchain. This transfer suggests the whale might be looking to sell and lock in profits.
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Bitcoin traded at $61,000 on July 3 following a worsening United States inflation outlook.
Data from Cointelegraph Markets Pro and TradingView indicated BTC price strength slowly recovering from a 2% dip at the daily close.
This downturn led to local lows of $60,561 on Bitstamp, erasing gains from the weekend.
The mood deteriorated further as Jerome Powell, chair of the U.S. Federal Reserve, spoke about the economy and monetary policy at an event in Portugal.
Powell explained that the Fed needed more convincing that conditions were right to lower interest rates, a key move being closely watched by crypto and risk asset bulls.
“We just want to understand that the levels that we’re seeing are a true reading on what is actually happening with underlying inflation,” Powell said, quoted by Reuters and others.
Markets slightly reduced the odds of a rate cut coming at the September meeting of the Fed’s Federal Open Market Committee (FOMC), with the likelihood standing at around 65% at the time of writing, according to CME Group’s FedWatch Tool.
“It’s clear that the Fed will continue their ‘meeting by meeting’ approach,” trading resource The Kobeissi Letter wrote on X.
“While markets are expecting 2 rate cuts this year, the Fed’s latest guidance says 1 cut is coming. The next few months are crucial.”
Bitcoin market participants watched with frustration as BTC/USD returned to the bottom of a familiar range.
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Popular trader Skew noted manipulative liquidity moves on exchanges via order “spoofing,” where overhead resistance was added and removed multiple times.
Spot demand on Binance, the largest global exchange, was at $60,000 “and lower,” he added.
Others noted that Bitcoin had filled the latest “gap” in CME futures, created by the weekend’s upside.
Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, expressed concern over the latest BTC price action.
Markets, he argued, had not yet reconciled with the ongoing capitulation phase among miners, a phenomenon recently reported by Cointelegraph.
“Price has not yet reflected the onchain obliteration,” he warned X followers. “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.”
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Over half of the top American hedge funds have disclosed exposure to newly launched spot Bitcoin exchange-traded funds (ETFs) in a year, as BTC/USD has significantly outperformed major stocks and indexes.
Data from investment firm River reveals that 13 out of the top 25 United States hedge funds owned Bitcoin ETFs by the end of Q1 2024.
Notably, Millennium Management held 27,263 BTC worth $1.69 billion, making up about 2.5% of its total assets under management worth $67.7 billion.
Other significant players include Schonfeld Strategic Advisors with 6,734 BTC and Point72 Asset Management with 1,089 BTC.
In contrast, some top hedge funds, such as Bridgewater Associates, AQR Capital Management, and Balyasny Asset Management, have yet to invest in Bitcoin ETFs.
Interestingly, Bitcoin’s growing acceptance coincides with a rise in cash reserves across U.S. companies.
According to an analysis by treasury advisory firm Carfang Group, the cash or cash equivalents held by corporations reached a record high of $4.11 trillion in Q1 2024.
Some companies, namely Reddit, Semler Scientific, JPMorgan, and Wells Fargo, have allocated a small portion of their cash reserves to Bitcoin or Bitcoin ETFs.
This trend indicates that U.S. firms, including hedge funds and corporations, have become more confident in treating Bitcoin as a viable asset for diversification and hedging against traditional market risks.
Bitcoin outperforming Apple, Tesla stocks in 2024
Wall Street’s interest in Bitcoin grows as the cryptocurrency fares better than top stocks and stock indexes.
READ MORE: Vitalik Buterin Advocates Clearer Crypto Regulations Amid Regulatory Frustration in the US
BTC’s returns in the first half of 2024 were about 94%. In comparison, the U.S. benchmark S&P 500 index rose 23%, while the Dow Jones Industrial Average grew 14% in the same period.
Even Apple and Tesla stocks underperformed Bitcoin, returning 10% and -29%, respectively, year-to-date.
However, Nvidia, which recently became the world’s most valuable publicly traded company, outperformed Bitcoin, rising by over 150% in the first six months of 2024 due to an ongoing artificial intelligence boom.
Veteran trader Peter Brandt anticipates Bitcoin’s relevance growing as a hedging asset, particularly against traditional safe havens like gold.
He noted that BTC’s market capitalization could rise 230% against gold after 2025.
Earlier this year, ARK Invest’s annual research report concluded that institutional portfolios aiming for maximized risk-adjusted returns should have allocated 19.4% to Bitcoin in 2023.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
Bitcoin focused on $63,000 on July 2 as attention shifted to macro liquidity changes.
Data from Cointelegraph Markets Pro and TradingView showed BTC price action attempting to cement gains, accompanying the monthly close.
Despite failing to break key resistance levels above $64,000, Bitcoin traders found renewed optimism as July began.
“Bitcoin has resumed its uptrend,” popular trader and analyst Rekt Capital summarized in one of several posts on X (formerly Twitter).
Rekt Capital highlighted the monthly close as a key sign of strength, with a chart showing a breakout from June’s downtrend.
“The goal? To build a foundation from which it will be able to springboard to the Range High area at ~$71,500 over time,” he explained.
Fellow trader Daan Crypto Trades emphasized United States dollar liquidity trends.
As Cointelegraph reported, these are crucial for crypto market performance, with expectations of positive repercussions increasing last month.
“During this range, the BTC price has moved mostly in line with USD Liquidity,” he asserted alongside a comparative chart.
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“We just saw a big decrease into a nice move up during this end of the quarter into the new quarter.
Liquidity has moved little this year but both BTC & Stocks have been front-running a future expansion of USD liquidity.”
Market analyst Cole Garner suggested that recent Federal Reserve liquidity changes could impact BTC price strength in the short term.
“Biggest Fed Net Liquidity rate-of-change spike in 15 months,” he observed.
“Last time that happened, bitcoin rose ~40% in one week. Not assuming a repeat, but you love to see it.”
Technical indicator data also hinted at increased volatility for Bitcoin.
On weekly timeframes, Bollinger Bands were constricting to levels seen only a handful of times in Bitcoin’s history—a classic precursor to major breakouts.
This phenomenon was observed on X by popular analyst Matthew Hyland.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
Over half of the top American hedge funds have disclosed exposure to newly launched spot Bitcoin exchange-traded funds (ETFs) in a year, as BTC/USD has significantly outperformed major stocks and indexes.
Data from investment firm River reveals that 13 out of the top 25 United States hedge funds owned Bitcoin ETFs by the end of Q1 2024.
Notably, Millennium Management held 27,263 BTC worth $1.69 billion, making up about 2.5% of its total assets under management worth $67.7 billion.
Other significant players include Schonfeld Strategic Advisors with 6,734 BTC and Point72 Asset Management with 1,089 BTC.
In contrast, some top hedge funds, such as Bridgewater Associates, AQR Capital Management, and Balyasny Asset Management, have yet to invest in Bitcoin ETFs.
Interestingly, Bitcoin’s growing acceptance coincides with a rise in cash reserves across U.S. companies.
According to an analysis by treasury advisory firm Carfang Group, the cash or cash equivalents held by corporations reached a record high of $4.11 trillion in Q1 2024.
Some companies, namely Reddit, Semler Scientific, JPMorgan, and Wells Fargo, have allocated a small portion of their cash reserves to Bitcoin or Bitcoin ETFs.
This trend indicates that U.S. firms, including hedge funds and corporations, have become more confident in treating Bitcoin as a viable asset for diversification and hedging against traditional market risks.
Bitcoin outperforming Apple, Tesla stocks in 2024
Wall Street’s interest in Bitcoin grows as the cryptocurrency fares better than top stocks and stock indexes.
READ MORE: Vitalik Buterin Advocates Clearer Crypto Regulations Amid Regulatory Frustration in the US
BTC’s returns in the first half of 2024 were about 94%. In comparison, the U.S. benchmark S&P 500 index rose 23%, while the Dow Jones Industrial Average grew 14% in the same period.
Even Apple and Tesla stocks underperformed Bitcoin, returning 10% and -29%, respectively, year-to-date.
However, Nvidia, which recently became the world’s most valuable publicly traded company, outperformed Bitcoin, rising by over 150% in the first six months of 2024 due to an ongoing artificial intelligence boom.
Veteran trader Peter Brandt anticipates Bitcoin’s relevance growing as a hedging asset, particularly against traditional safe havens like gold.
He noted that BTC’s market capitalization could rise 230% against gold after 2025.
Earlier this year, ARK Invest’s annual research report concluded that institutional portfolios aiming for maximized risk-adjusted returns should have allocated 19.4% to Bitcoin in 2023.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.