Coinspeaker Crypto Market Eyes Relief Rally amidst Slowing Stablecoin Outflows
The crypto market is showing signs of potential recovery as July begins, following a turbulent June marked by significant price swings. According to Santiment, a crypto intelligence platform, there’s growing optimism for a “relief rally” amidst decreased selling pressure on exchanges.
“Looking at July’s outlook, there is a major reason to be optimistic after so much small trader capitulation,” noted Santiment on July 2, highlighting negative sentiment among traders as a potential precursor to market rebound.
📊 Looking at July's outlook, there is major reason to be optimistic after so much small trader capitulation. The crowd's negativity and average trader losses means that a relief rally may just be beginning. Read our June monthly recap here! https://t.co/1359OPYMuY
To read our… pic.twitter.com/ZEVCm3sz2H
— Santiment (@santimentfeed) July 2, 2024
Bitcoin (BTC) endured a challenging June, dropping nearly 7% and hitting lows around $59,500. This decline mirrored a broader market trend that saw the total crypto market capitalization decrease by approximately $400 billion from its earlier peak.
Reduced Stablecoin Outflows Points to Exhaustion among Sellers
Amid the ongoing volatility in the cryptocurrency markets, analyst Minkyu Woo from CryptoQuant has highlighted a significant trend suggesting that sellers may be nearing exhaustion. Woo’s analysis, shared on July 1, focuses on the outflow of USDT from major crypto exchanges.
He notes a recent decline in these outflows, indicating that large-scale selling pressure is easing. This shift suggests that investors are increasingly opting to hold onto their crypto assets rather than selling them, a potential sign of growing market stability.
“Sellers are showing signs of exhaustion,” Woo remarked, emphasizing the importance of this decline in USDT outflows as a positive indicator of market sentiment. The data, spanning from 2023 onwards, illustrates a consistent trend towards reduced selling activity among investors. Woo’s findings offer optimism that the market may be poised for a period of stabilization and potential recovery.
Photo: QryptoQuant
Currently, Bitcoin (BTC) is trading around $62,900, reflecting minor fluctuations over the past day. According to Coincodex, the Bitcoin Fear and Greed Index is at 51, indicating neutral sentiment in the BTC market.
Investors are closely monitoring whether the trend of reduced selling pressure, coupled with neutral sentiment as indicated by the Fear and Greed Index, will translate into sustained market resilience in the coming weeks.
Mt. Gox Bitcoin Distribution Could Impact Market
Mt. Gox, once the world’s leading crypto exchange, plans to begin distributing over 140,000 Bitcoins stolen in a 2014 hack starting July 2024. This long-awaited move follows years of delays and could introduce significant selling pressure into the Bitcoin markets.
The exchange’s recent movement of these assets, totaling about $9 billion, from cold storage to undisclosed addresses signals preparations for the repayments. This action raises concerns about potential market volatility and investor sentiment, as creditors eager to recover funds frozen for a decade may opt to sell.
The substantial amount involved could have a significant impact on Bitcoin price, potentially creating a ripple effect across the entire cryptocurrency market. The crypto community is keeping an eye on these developments, anticipating major potential implications on market dynamics.
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Crypto Market Eyes Relief Rally amidst Slowing Stablecoin Outflows
