Crypto Market Update: July 2024 Highlights
Mt. Gox Moves $2.5 Billion More Bitcoin
The defunct Japanese crypto exchange, Mt. Gox, has recently transferred an additional $2.5 billion worth of Bitcoin. This movement is part of the ongoing effort to redistribute assets to creditors after the exchange's collapse in 2014. So far, approximately 59,000 of the recovered 142,000 Bitcoins have been distributed through Kraken and Bitstamp exchanges, as reported by Glassnode. These distributions are notably larger in scale than recent ETF inflows and sell-offs by the German government. Despite this massive redistribution, many creditors are choosing to HODL, dampening the potential sell-side pressure on the market.
Ethereum ETF Inflows and Grayscale Outflows
Ethereum ETFs have seen significant inflows, particularly BlackRock's Ethereum ETF, which recorded $118 million on a single day. In contrast, Bitcoin ETF inflows have been relatively modest. Despite this positive movement, the overall net inflows for Ethereum ETFs remain negative due to substantial outflows from Grayscale's Ethereum ETF, which has seen a whopping $1.84 billion exit. This is largely attributed to traders who initially bought the Grayscale ETF at a discount and are now closing their positions. Analysts believe that once these outflows stabilise, consistent inflows into other Ethereum ETFs could help facilitate an ETH price rebound.
Bitcoin Technical and Price Analysis
Bitcoin (BTC) has experienced notable volatility, with its price dropping to $64,348. This decline might be influenced by the US Federal Reserve's decision to keep interest rates unchanged at 5.3% and geopolitical tensions in the Middle East. Fed Chair Jerome Powell suggested that a rate cut "could be on the table" in the near future, depending on further economic indicators. This nuanced stance has left traders on edge, influencing Bitcoin's price movements.
Source: X
Key technical levels for Bitcoin include immediate support at $63,986.12. If Bitcoin fails to hold above this level, further support can be found at $63,237.96 and $61,836.67. Immediate resistance is at $66,135.56, followed by $66,868.09 and $67,347.65. The Relative Strength Index (RSI) is currently at 44, indicating slightly oversold conditions, which could suggest a potential for short-term upward correction if buying pressure increases.
An upward trendline is providing support near $63,200. Maintaining this support level is crucial for sustaining any bullish momentum. If Bitcoin can stay above this trendline, it may see a buying trend driving the price back towards the $66,000 resistance level. Conversely, breaking below this trendline could reinforce the bearish scenario, leading to further declines.
In conclusion, Bitcoin's technical outlook is mixed. The price is exhibiting a bearish trend influenced by macroeconomic factors and market sentiment. However, the oversold RSI and critical support levels offer a glimmer of hope for a potential rebound. Investors should closely monitor these levels and broader economic indicators, including the upcoming Federal Reserve meeting, to make informed trading decisions. Maintaining support above $63,200 is pivotal for a bullish scenario, while a drop below this level could indicate further bearish trends.
Trump and the Crypto Connection
In an unexpected turn of events, former President Donald Trump has embraced cryptocurrency, promoting limited edition Bitcoin-themed sneakers following his speech at the Bitcoin 2024 conference. These sneakers, priced at $299, are available in limited quantities and can be purchased using Bitcoin or other cryptocurrencies. This move marks a significant shift for Trump, who once criticised Bitcoin as being "based on thin air."
At the Bitcoin 2024 conference in Nashville, Trump managed to raise $25 million, marking his second-largest fundraiser ever. Contributions came from a mix of industry leaders and prominent crypto figures, including significant donations in digital currencies like Bitcoin, Ether, XRP, and USDC. Notably, the Winklevoss twins were among the top donors, each contributing 15.57 Bitcoin, valued at over $1 million at the time of donation.
XRP and Other Market Movements
XRP has also seen significant price action, dropping nearly 5.4% to $0.606, yet not erasing gains made earlier. This decline follows a period of accumulation by "whales" or large holders of XRP, indicating potential future growth despite the recent setback. Ether and Solana have also experienced declines, dropping 3.3% and 2.27% respectively.
Monthly Heatmaps
Source: QuantifyCrypto
Source: Coinmarketcap
Source: Coinmarketcap
Source: Coinmarketcap
Conclusion
The crypto market continues to experience dynamic shifts influenced by macroeconomic factors, regulatory changes, and notable movements by significant market players. Bitcoin's price remains highly sensitive to geopolitical events and central bank policies, while Ethereum faces challenges with ETF inflows and outflows. Meanwhile, Donald Trump's unexpected foray into the crypto world highlights the growing intersection of politics and digital currencies. Investors should remain vigilant, keeping an eye on key technical levels and broader market trends to navigate this volatile landscape.
Best Strategies by 1M Return
Ready to start your journey with us?
Trusted by over 100,000 users from around the world.
