According to data from on-chain data analysis company Glassnode, 83% of short-term holders are facing unrealized losses due to the recent Bitcoin price correction. Recently, the price of Bitcoin fell from a high of $63,801 on July 1 to a low of $53,499 on July 5, a drop of more than 16.5%, the largest weekly drop since 2022.
Glassnode analysis pointed out that due to the recent Bitcoin plunge, 83% of short-term Bitcoin holders who held for less than 155 days turned into unrealized losses. Of the 3.2 million Bitcoins (about $184 billion) held by these short-term holders, 2.9 million Bitcoins were sold recently, causing the Bitcoin price benchmark to fall to $53,000. This situation has brought tremendous pressure to the entire cryptocurrency market.
The future market outlook is not optimistic either. The report said that if the price of Bitcoin fails to break through $58,000 in the next few days, the long-term outlook will be revised downward and the current level will become an important resistance level. As of 2:30 p.m. on the 11th, Bitcoin was trading at $57,594 and faced strong resistance at $58,000.
Technical analysts predict that the 200-day exponential moving average (EMA) of $58,180 may become the first line of resistance. If it breaks through, additional resistance may appear at the $63,880 level in the future. Dan Crypto Trades, a cryptocurrency analyst, said, "The Bitcoin bull market can only be sustained if Bitcoin recovers the 200-day EMA and exceeds $59,000."
Bitcoin bull Anthony Scaramucci reiterated his view that Bitcoin will rise to $100,000 by the end of this year. Scaramucci pointed out that as Mt. Gox began to repay billions of dollars to creditors, the price of Bitcoin fell due to increased selling pressure. He also mentioned the German government's decision to sell Bitcoin and the halving that occurred in April this year as reasons for the price drop.
Scaramucci explained, “Every time a halving occurs, some miners are forced to sell some bitcoins to maintain profits, which puts temporary pressure on Bitcoin.” However, he remains confident in the long-term fundamental value of Bitcoin and expects it to reach $100,000 by the end of this year.
He also noted that bankrupt cryptocurrency exchange FTX plans to repay billions of dollars to damaged investors, of which 40% to 50% will be reinvested based on their loyalty to the industry. Despite the volatility experienced by the market, many analysts and industry participants remain optimistic that a new bull run is imminent.
The U.S. Bitcoin spot ETF recorded a total net inflow of $147.37 million on the 10th, continuing the momentum of capital inflows for four consecutive days. As the price of Bitcoin fell below $58,000, concerns about a long-term correction increased, but this also showed strong demand for buying at low prices.
According to Soso Value statistics, the fund that attracted the most funds on that day was Fidelity's FBTC, with a net inflow of $57.79 million. Franklin Templeton's ETF also recorded $31.66 million, the largest inflow since early May. BlackRock's IBIT recorded a net inflow of $22.24 million, and Valkyrie's BRRR recorded an inflow of $20.68 million. In addition, Invesco and Galaxy Digital's BTCO showed small inflows of less than $10 million.
Grayscale's GBTC recorded a net outflow of $8.15 million, becoming the only fund with a net outflow. Bitwise Chief Investment Officer Matt Hogan predicted that Bitcoin could reach $100,000 by the end of the year. Changes in the government's attitude towards Bitcoin and the possibility of a rate cut by the Federal Reserve are considered factors in the price increase.
