As a seasoned financial analyst with over a decade of experience in the crypto market, I have witnessed the volatile nature of Bitcoin and its correlation with geopolitical events and economic indicators. The recent drop in Bitcoin price to around $66,922 and the total crypto market cap decline to about $2.51 trillion is concerning but not entirely surprising.
The price of Bitcoin (BTC) dipped over 4% within the last 24 hours, reaching approximately $66,922 during the early European trading session on Tuesday. In tandem, the overall cryptocurrency market capitalization saw a drop of around 3%, settling at roughly $2.51 trillion. This downturn led to the elimination of over $167 million in positions from the entire crypto derivatives sector, primarily affecting long-term investors.
The Bitcoin price encountered resistance near the $70,000 mark, potentially indicating a forthcoming price decrease within the upcoming weeks. In the daily chart contrasted to the US dollar, Bitcoin’s price structure suggests a potential double top formation accompanied by a bearish divergence on the Relative Strength Index (RSI).
Bitcoin Price Under Pressure from US Political Climate
Bitcoin’s price has surged due to the approval of US spot BTC ETFs. However, the stark contrast between the two major political parties’ views on cryptocurrency has dampened optimism. Just days after Donald Trump expressed his support for Bitcoin and declared he wouldn’t sell his holdings, the Biden administration transferred over $2 billion in Bitcoin within a day.
The PeckShield Alert label #USGov related to the Bitcoin address bc1qje…wzde has moved approximately 29,800 BTC (equivalent to around $2 billion) to two new addresses: bc1qla…2zek with a balance of nearly 9,999.999 BTC and bc1qng…kz4c holding about 19,799.99 BTC.
— PeckShieldAlert (@PeckShieldAlert) July 30, 2024
As a crypto investor, I’ve noticed the recent decision by the Biden administration to offload almost 30,000 Bitcoins, shortly after Trump’s weekend speech, has sparked widespread criticism. For example, Mike Novogratz, CEO of Galaxy Digital, characterized this action as a “dump,” suggesting that it disregards the interests of crypto investors like myself.
In her perspective as a Republican Senator, Cynthia Lummis claims that the Biden administration, specifically Senator Elizabeth Warren, disregards the expanding interest in cryptocurrencies while attempting to stifle their growth.
This is the first action taken after Harris “reset with bitcoin and crypto”.
When someone shows you who they are, believe them. ⤵️
— Cynthia Lummis 🦬 (@CynthiaMLummis) July 29, 2024
Currently, reports indicate that Democratic presidential hopeful Kamala Harris is pondering over Michigan Senator Gary Peters as her potential running mate. It’s important to note that Peters doesn’t hold a pro-crypto stance and has previously collaborated on legislation against digital asset money laundering. In 2023, he co-sponsored the Digital Asset Anti-Money Laundering Act.
Economic Outlook
1. In anticipation of tomorrow’s Federal funds rate and BoJ policy rate, Bitcoin’s price may spearhead the cryptocurrency market with increased volatility, as reported by Coinspeaker. Despite recent interest rate reductions in China, the EU, and Canada, it is projected that the US Fed will maintain its benchmark rate for now. However, there is a strong likelihood that the Fed will implement interest rate cuts later this year.
1. Over time, investment heavyweights like BlackRock Inc (NYSE: BLK) have persistently amassed assets regardless of market turbulence. Furthermore, Bitcoin has emerged as a refuge for investors amid global fiat inflation, with the U.S. debt now surpassing $35 trillion.
1) Based on blockchain information, it’s been observed that four significant investors (or ‘whales’) have acquired approximately 5,900 Bitcoins from various platforms over the past day. Meanwhile, BlackRock’s IBIT experienced a substantial net investment of around $205.62 million on Monday, effectively counteracting the withdrawals from GBTC and FBTC.
Midterm BTC Price Prediction
technically speaking, it’s plausible that the price of Bitcoin could dip down near the $60,000 support level before climbing back up to set a fresh record high by year-end; if Bitcoin’s value falls below $60,000 once more, however, it may retreat to approximately $52,000.
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2024-07-30 13:59