On Friday, Bitcoin’s price fell as low as $57,030.3, representing a 1.3 per cent decline over the preceding 24 hours, and marking the fifth straight week of losses. A looming fear of a sell-off, following the distribution of tokens by the now-insolvent Mt Gox exchange and pressures on large Bitcoin miners who might need to liquidate holdings to stay profitable after reward reductions, weighed on the price, as it fell despite a seemingly more dovish US Federal Reserve stance, and a generally negative market sentiment over tech stocks retreating on Wall Street.
The bulls can’t hold the market up: even in Ethereum, we’re seeing a small loss of 0.5%. There is modest bullish sentiment which buoyed it a little bit, but that came from speculation that an exchange-traded fund for Ether (the Ethereum-based token) will be spot at the New York Stock Exchange, as well as the expectation that there will be a series of interest rate cuts over the coming months. What we’re seeing in the broader market is a very small, cautious lift driven by macroeconomic news and some fundamentals that are specific to crypto markets. Analysts at JPMorgan suggested that selling pressures that have been holding up the market might ease up at the end of July to allow a rebound in August, but there’s still a certain degree of caution. What’s really holding up the market is quite a bit of capital flowing out of the exchange-based system, and it’s quite a large amount of Bitcoin – around 3% of the total market’s Bitcoin. That headline figure is high and people are looking at that and thinking it’s representative of something that’s happening long-term. It’s not; it’s actually a long-term tightening.
Source: Investing.com
