Thursday saw the encrypted market consolidate, with investors awaiting tomorrow’s Personal Consumption Expenditures (PCE) report, which is the Federal Reserve’s preferred inflation indicator. According to CoinPush data, the long and short positions of Bitcoin were evenly matched, with trading prices fluctuating between $60,500 and $62,500. As of the time of writing, the transaction price was $61,458, with a 24-hour increase of 0.8%.
Altcoins experienced an uptrend, with most of the top 200 tokens by market capitalization seeing gains. Mog Coin (MOG) had the highest increase at 31%, followed by SATS (1000SATS) at 16%, and Book of Meme (BOME) at 15.6%. Three artificial intelligence concept coins led the decline, with Fetch.AI (FET) falling by 13.3%, Ocean Protocol (OCEAN) by 11.8%, and SingularityNET (AGIX) by 11.4%.
The current total market value of cryptocurrencies is $2.29 trillion, with Bitcoin’s market share at approximately 53%.
In the US stock market, the S&P 500 and Dow Jones both rose by 0.09%, while the Nasdaq rose by 0.30% at the close of the day.
In addition to macroeconomic data, cryptocurrency investors are also paying attention to the debate between Biden and Trump. The Personal Consumption Expenditures Price Index for May in the US will be released on Friday, and investors hope that the report will show some relief in price pressure, providing evidence for the Federal Reserve to lower interest rates later this year.
Furthermore, cryptocurrency traders are closely watching the Biden-Trump presidential debate, which will take place at 9 pm Eastern Time. It is unclear whether the two candidates will mention cryptocurrencies during the debate, but the election results could have a significant impact on the cryptocurrency industry. Standard Chartered Bank previously predicted in a report that if Trump wins the election, Bitcoin could reach a record high of $150,000.
Investors return to spot Bitcoin ETFs. Data from Farside Investors shows that after seven consecutive days of outflows from spot Bitcoin ETF investment products in the US, the net inflows of spot Bitcoin ETF funds turned positive in the past two days, with $31 million and $21.3 million recorded on June 25 and June 26, respectively. As of June 26, the BTC managed by these funds was worth approximately $52.61 billion, higher than the $47 billion at the beginning of May.
At the same time, one of the first issuers of spot Bitcoin ETFs in the US, VanEck, has applied to issue a new Solana ETF. The company previously submitted an application for the first Ethereum ETF in 2021. Although insiders believe that the probability of Solana ETF being approved this year is low, this development highlights the increasing acceptance and adoption of Bitcoin and other cryptocurrencies in the traditional financial sector, which helps drive up the valuation of the cryptocurrency market.
Analyst Benjamin Cowen discussed the possibility of further decline, stating on his podcast that Bitcoin could return to the $50,000 range in a possible “summer slump.”
Cowen said, “A deeper pullback to around $50,000 is possible. I do think that’s definitely possible. In a previous cycle, after the top in 2019, we ultimately pulled back about 50%. Even in 2016, there were some larger pullbacks, like 30% and 40%.”
However, Cowen admitted that volatility is expected to decrease as the asset class matures. He said, “You may also see decreasing volatility, and the cycles will continue because it takes more and more money to move the price higher.”
Secure Digital Markets analysts believe that BTC is currently testing the high point from Tuesday, with the next upside target at $65,000 and strong support at the $60,200 level.
Analyst Bloodgood on the X platform said, “For altcoin traders, breaking the closing price of $60,000 only means one thing: a painful summer, otherwise, the future will be a joyful time.”
Chain analysis platform CryptoQuant analyst Axel Adler Jr. discussed how long the BTC price correction from the March all-time high might last, comparing it to the behavior seen at the end of 2019.
He wrote on the X platform, “The current market is very similar to the 2019-2020 correction, which is the most likely scenario for this correction to occur. The correction lasted for five months, with a maximum decline of 46%.”
In another chart, the proportion of profits from circulating BTC decreased by 18%, which Adler said corresponds to the overall “pessimistic” sentiment among holders.
Adler added that everything could still change – breaking the current situation would require buying pressure of 500,000 BTC ($31 billion), a volume of funds that could reverse the current trend.
Market analyst Sage Young is optimistic about July’s prospects, noting that history shows “a decrease in Bitcoin prices in June means double-digit growth in July.”
According to data from crypto derivatives statistics platform Coinglass, aside from this year, BTC has had five poor-performing years in June: 2022, 2021, 2020, 2018, and 2013. After the decline in June, BTC has risen by over 9.6% in the following month, sometimes even reaching as high as 24%.
Sage Young added, “Expanding the sample size, the median return rate for BTC in June is -0.49%, while the median return rate for BTC in July is 9.6%.”
Author: BitpushNews Mary Liu
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Tags
2023 market trends
PCE
Altcoins
Bitcoin
Spot Bitcoin ETF
Regulation
Federal Reserve
Interest rate cut
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