According to Glassnode, short-term Bitcoin holders who took profits transferred more than 16,000 BTC worth more than $1 billion to exchanges in the last three days. These transfers suggest there may be more to come with BTC, as investor transfers to exchanges typically signal an intent to sell.
Last month, the US and German governments, along with Bitcoin, actively sold Bitcoin, causing the price of the flagship digital asset to fall 7% to below $60,000. However, current data suggests that the sell-off may worsen due to the large supply of BTC on over-the-counter exchanges, and the defunct Mt. Gox plans to begin distributing around $9 billion worth of BTC to lenders this month.
ETFs Can Keep Bitcoin Price Within a Range
As Bitcoin continues into July, analysts at digital asset company QCP predict that the Bitcoin price could test lower levels of $50,000 in the coming weeks. According to their report, increased supply could push the flagship asset to a lower price range.
However, the report added that Bitcoin is still well positioned to survive any sell-off and will receive support in the lower $50,000 range. He noted that interest from traditional finance (TradFi) through ETFs will continue to support the price of BTC.
This coincides with the view of billionaire entrepreneur Peter Thiel. In an interview with CNBC, Thiel said Bitcoin's sharp matic may be ending now that ETFs are now available. However, he did not rule out higher prices, but predicted more volatility and less obvious price increases. He noted:
“I’m not sure this matic ally will go from here. We have an ETF edition and I don’t know who else is buying it.”
However, Thiel, an early Bitcoin investor, admitted that he does not have as much Bitcoin as he would like. Interestingly, his venture capital firm Founders Fund was an early investor in Bitcoin, generating almost $2 billion in profits from its investment.
Bitcoin could recover in July
Meanwhile, not all market analysts believe Bitcoin will continue to decline as some believe the flagship asset is well positioned to make a comeback. Blockchain analytics firm Santiment has noticed that BTC has been experiencing tron negative sentiment for two months and traders are becoming extremely impatient. The firm noted that such tron crowd sentiment indicates that the asset could soon recover.
The firm stated:
“Bitcoin’s moderate rebound after falling over the past two weeks has proven to be short-lived for now. But note the continued negativity coming from the crowd, indicating that their patience is wearing thin. This, along with the low RSI of just 36, is the tron sign that a rebound is near.”
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