Both Bitcoin and Ethereum fell
After Bitcoin consolidated above the $60,000 mark for several days, the market chose to accelerate downward today. After lunch, it fell below the $58,000 and $57,000 marks in succession, reaching a low of $56,952, a new low in nearly two months. Ethereum also fell from $3,300 to $3,126, leading to a general decline in the crypto market. In the Binance USDT market, there were less than ten non-stable currency assets with positive gains in the past 24 hours, and ARB hit a record low of $0.71.
According to Coinglass data, in the past 12 hours, the total liquidation amount was $207 million, of which the long order liquidation amount was $187 million.
The German government sells off Bitcoin
At the beginning of this year, the German police seized 50,000 Bitcoins in connection with a 2013 pirated website case. The sell-off began in June, with a total of about 9,600 sold, and currently holds 40,359. This afternoon, the German government transferred 3,000 BTC to exchanges and anonymous wallets, and the price of Bitcoin subsequently fell below $57,000.
Mt.Gox compensation begins test transfer
Mt.Gox compensation involves 142,000 BTC and 143,000 BCH, and the market is paying close attention to it. According to the official website document, the Mt.Gox trustee said that repayment will begin in early July. On July 4, the Arkham platform showed that Mt.Gox had conducted a test transfer, and the market was further affected and fell.
Bitcoin spot ETF net outflow
On July 3, the total net outflow of Bitcoin spot ETF was $20.4495 million, the first net outflow in the past 5 days. Past data shows that when Bitcoin spot ETF has a net inflow, the price of Bitcoin tends to rise, while when the net outflow increases, the price of Bitcoin falls.
Market outlook
QCP Capital believes that Bitcoin broke the $60,000 support level under selling pressure, and miners showed signs of surrender, which usually means that the price has bottomed out. Despite the severe market sell-off, the options market remains optimistic about ETH call options. QCP Capital predicts that the submission of Ethereum spot S-1 documents may drive ETH to rebound.
Andrew Kang of Mechanism Capital is more pessimistic, believing that Bitcoin may further pull back to the $40,000 range, and the market may need several months of shock/downward trend before a reversal may occur.
