According to the latest forecasts, in the month of July, the price performance of Bitcoin (BTC) and Ethereum (ETH) can be strongly influenced by a series of economic and market factors.
Ryan Lee of Bitget offers a detailed analysis of the main elements that could determine the trends of these two giant cryptocurrencies. Let’s check all the details below.
What are the price predictions for Bitcoin and Ethereum in the near future?
As expected, Ryan Lee of Bitget released important predictions regarding the price trend of the two famous cryptos Bitcoin and Ethereum. One of the main factors that must be taken into account, according to him, is the macroeconomic environment.
Recently, the net liquidity index of the Federal Reserve Board (FED) exceeded 6.5 trillion dollars, releasing 400 billion dollars of liquidity into the market since the end of June.
This level of liquidity is the highest in the last two years. Furthermore, with the prospect of future interest rate cuts, market liquidity is expected to become even more abundant. So favor a bullish trend in the cryptocurrency market.
Another positive indicator for the cryptocurrency market is the increase in the market capitalization of stablecoins, which went from 160 to 162 billion dollars in June. This increase indicates a net inflow of capital into the cryptocurrency market.
Despite a contraction of the overall market cap in June, the increase in stablecoins suggests that leverage in the cryptocurrency market is currently low, leaving room for further bull moves in the future.
Key events: Mt. Gox Refunds and Spot ETFs on ETH
Going forward, we see two fundamental events that could significantly affect the prices of BTC and ETH in July. First, Mt Gox announced that it will start refunding BTC and BCH at the beginning of July.
This refund raised fears of significant selling pressure as Mt Gox moved $7 billion of assets onto the chain. A factor that could potentially cause a significant drop in BTC prices.
On the other hand, progress on the ETH Spot ETF could have a positive impact on Ethereum. In late May, the SEC approved the 19b-4 filing and recently Fidelity, 21Shares and Grayscale filed Forms S-1 of the ETH Spot ETF with the SEC.
It is very likely that the ETF ETH will be officially launched on the US capital market in July. This therefore leads traditional funds to buy ETH directly and possibly determine a bullish trend for ETH.
In summary, the price range of BTC in the month of July is expected to be between 58,000 and 73,000 dollars, while the price range of ETH is expected to be between 3,100 and 4,500 dollars.
It is likely that the ETH/BTC exchange rate will continue its upward recovery, supported by the macroeconomic factors and market events described.
These developments could set an interesting dynamic for investors and enthusiasts in the cryptocurrency sector.
Bitcoin falls to $61,000: brief analysis of the causes of the crash
Bitcoin recently experienced a significant price drop, falling to the $61,000 level and hitting a new monthly low.
Several factors contributed to this decline, including mining activity, Federal Reserve policies, the lack of new inflows and market indicators.
BTC miners play a crucial role in the recent decline. There was a significant increase in sales of old wallets, mainly held by miners, after the recent Bitcoin halving event, which reduced daily production from 900 to 450 Bitcoin.
Bitcoin miner reserves have fallen to their lowest levels in 14 years, with a decrease of 50,000 units since the beginning of the year.
This month, the miners sold more than 30,000 BTC, worth about 2 billion dollars, mainly on the exchanges, which directly contributed to the price drop.
Furthermore, the German government moved 600 million dollars worth of Bitcoin to the exchanges and sold 200 million dollars in a single day.
Holding around 3 billion dollars in Bitcoin, this sudden sell-off, likely triggered by financial requirements amid economic pressures, had a significant impact on the market.
Finally, on Thursday, the spot Bitcoin ETFs listed in the United States recorded the fifth consecutive day of outflows, totaling more than 900 million dollars for the week.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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