First and most important of all, BTC spot exchange-traded funds (ETFs) have returned to the red after stringing together five days of net inflows.
This Tuesday, the 10 bitcoin funds experienced a net outflow of $13.7 million, led by losses of $32.4 million from Grayscale Bitcoin Trust (GBTC), which has already lost more than $18.5 billion since its conversion to a spot ETF in early January.
This, after exchange-traded funds lost more than $900 million in the month of June. Analysts such as those at QCP Capital point out that there are movements that lead them to think that it could be a good month for these investment products, while others, such as Samer Hasn, of XS.com, question the ability of these ETFs to maintain the bullish momentum of the market.
On the other hand, there was growing nervousness in the market over the Mt. Gox refund program. At the end of last month, those responsible for supervising the liquidation process of the defunct cryptocurrency exchange announced that in July they would begin to return the more than 140,000 stolen during a cyberattack in 2014, valued at approximately $9 billion.
Many analysts think that a large portion of creditors will sell their bitcoin once they receive it, since their tokens have appreciated exponentially in recent years. If these hypotheses were confirmed, there could be an excess supply in the market that would cause the prices of the queen cryptocurrency to fall even further.
Thirdly and related to this, Germany has once again sold some of its bitcoin holdings
All of these factors have dampened investor sentiment in what appeared to be a fairly promising start to July. After falling sharply in June, investors were hopeful that the trend would soon reverse, as the king cryptocurrency usually rebounds in the seventh month of the year, especially after a bearish June.
What can happen to the price of Bitcoin?
Technically, César Nuez, an analyst at Bolsamanía, points out that bitcoin is holding "in the vicinity of the support it presents at US$56,910." "These prices are important since, very close, is the support offered by the 200-session average," he noted.
"To confirm a continuation of the increases we should wait for the all-time highs of US$74,415 to be surpassed. The surpassing of these prices would confirm the end of the lateral movement of recent months and would give us a first target increase of US$77,000," he concluded.
How do the rest of the cryptocurrencies operate?
In the rest of the market, 'altcoins' are also dyed red. The sharpest drop is led by Solana up to 6.1%, followed by Polkadot (-5.5%), Shiba Inu (-5.1%) and Dogecoin (-5%).
