The cryptocurrency market is currently in a tumultuous phase as Bitcoin revisits the $50,000 territory amid heavy selling pressure. A significant factor contributing to this downturn is the ongoing underperformance of spot Bitcoin ETFs, which is exerting downward pressure on prices.
Bitcoin (BTC) has seen a notable decrease in value, dropping to $59,100 early on Thursday. For many BTC investors, the crucial decision now revolves around whether to capitalize on the current dip or anticipate further declines to $50,000, or potentially an upswing to $70,000.
Bitcoin Confronts Intense Selling
Data from Santiment, an on-chain analytics platform, indicates that BTC has encountered numerous challenges over the past two months. The price of Bitcoin has now plummeted to its lowest in two months, with most alternative coins (altcoins) faring even worse. Traders who bought into the dip as BTC approached $60,000 have faced aggressive liquidations of their long positions. Ethereum and Solana, among other top cryptocurrencies, have experienced similar sell-offs.
During this period, significant liquidations of the leading digital asset have contributed to its price decline. Ethereum (ETH) and Solana (SOL) have also witnessed substantial drops in their respective prices. Ethereum, for instance, dipped to $3,200 despite expectations of a bullish trend ahead of the upcoming launch of spot ETFs by mid-July.
Nonetheless, Santiment reported that crypto enthusiasts view the current downturn as an opportunity to purchase assets at lower prices. However, the firm advised caution, recommending investors to wait for initial volatility to settle before considering further investments. According to Santiment, optimal buying opportunities arise when traders exhibit impatience and skepticism.
The firm cited an example of traders buying into the dip when BTC dropped to $60,000, shortly followed by substantial sell-offs from long positions. Ethereum and Solana also experienced more severe liquidations compared to Bitcoin during this period. Santiment highlighted altcoins with notably low funding rates as particularly attractive investments currently, pointing out projects such as Balancer (BAL), Chromia (CHR), and Celer (CELR), which have seen heavy shorting on the Binance exchange in the past 24 hours. The firm’s analysis suggests that liquidations of short positions tend to drive price increases.
Bitcoin Whale Records $20M Loss
Recent volatility in the Bitcoin market has resulted in a whale investor losing approximately $20 million. According to on-chain data provider Lookonchain, a major Bitcoin whale or institutional investor recently deposited 1,800 BTC (approximately $106 million) on Binance.
This investor, who has been actively accumulating BTC on the exchange, has deposited a total of 5,281 BTC ($323 million) since June 27. Despite holding a substantial 6,068 BTC ($358 million) now, the investor reportedly incurred a $20 million loss in their latest trade.
On another front, spot Bitcoin ETFs continue to struggle, with daily net outflows reaching $20.5 million on Wednesday, July 3. Grayscale’s GBTC saw the largest outflow, totaling $27 million, while Fidelity’s FBTC stood out with inflows amounting to $6.5 million. Other ETFs remained inactive with zero inflows on Wednesday.
Meanwhile, Bitcoin’s price continues to decline, currently trading at $57,702, marking a 5% decrease over the past 24 hours. Trading volume surged by 58.5% to $36 billion, with the market cap remaining at $1 trillion.
Recommended for you:
– Bitcoin Buying Guide
– Bitcoin Wallet Setup Tutorial
– Check Bitcoin’s 24-hour Price
– More Bitcoin News
– What is Bitcoin?
Subscribe to our daily newsletter!
>> Subscribe <<
No spam, just insights. Unsubscribe anytime.