In recent days, the cryptocurrency market has been volatile. Bitcoin fell sharply today, falling below $61,000, and Ethereum also fell below $3,300. The market fell into silence, as if waiting for the next wave of surges.

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Analysts point out that this may be the biggest challenge in the current bull market, but it is also a time to welcome new opportunities. When will the next round of rise come? This is the answer everyone is waiting for.

Bitcoin falls below $61,000

The sharp drop in Bitcoin has thrown the entire cryptocurrency market into chaos, attracting widespread attention from investors around the world. Analysts pointed out that the main reason for the market weakness is the lack of strong buying support, which has led to low trading activity and a relatively "boring" market.

Latest market dynamics: The trustee of Mt.Gox announced that it has started to repay BTC and BCH, which is expected to release nearly 1% of the Bitcoin supply, triggering strong selling pressure and market panic. At the same time, the German government announced the sale of 50,000 Bitcoins, and the whales arbitrage of $1.2 billion in two weeks. The continuous negative news and selling pressure caused the Bitcoin price to continue to fall, with a single-day drop of more than 5%. The crypto market fell into a comprehensive downturn.

Data shows that the cryptocurrency market has experienced more than $150 million in liquidations in the past 24 hours, reflecting widespread market panic. However, once Bitcoin fell below $61,000, it attracted some long positions, showing the market's resilience. Historical data shows that the cryptocurrency market tends to rebound quickly after a sharp drop.

Looking ahead, most analysts believe that Bitcoin faces the risk of further decline. 10X Research Institute pointed out that although the bull market has not ended, the upward momentum of cryptocurrencies has obviously weakened. If the adjustment continues, the price of Bitcoin may further drop to around $50,000.

This week's volatility warning

In addition to the sharp fluctuations in Bitcoin prices, the cryptocurrency market will face several important events in the coming week that may cause sharp market fluctuations. Investors need to pay close attention and be prepared.

First, the first presidential debate will be held on June 27, hosted by CNN. This is the earliest presidential candidate debate in U.S. history and is expected to attract market attention. Political events often have an impact on financial markets, and the cryptocurrency market is no exception and may face volatility.

Secondly, the United States will release a number of important economic data this week, the most watched of which is the May core personal consumption expenditure (PCE) price index to be released on June 28. This data is regarded as an important indicator for the Federal Reserve to measure inflation, and its release may affect market expectations for monetary policy. Analysts predict that if the PCE data is higher than expected, it may exacerbate market concerns about interest rate hikes, leading to volatility and selling sentiment in the cryptocurrency market.

At the same time, a large number of exchange customers chose to stop loss and close their positions when prices fell sharply, further exacerbating the selling pressure in the market. This scale of stop loss operations not only had an impact on the cryptocurrency market, but also reflected the behavioral response of investors when market volatility increased.

In addition, as the Federal Reserve continues to raise interest rates, the global economic outlook faces uncertainty. Investors' concerns about future economic trends may lead to capital withdrawal from risky assets such as cryptocurrencies, further exacerbating market volatility.

When will the rising tide come?

In addition to short-term price fluctuations, the liquidity situation in the cryptocurrency market has attracted widespread attention. Industry analysts pointed out that the current market is facing a serious liquidity shortage problem.

According to statistics, the total transaction volume of the cryptocurrency market continued to be at a low level in June 2024. It is expected that in the future, the liquidity of the market may further deteriorate, exacerbating price fluctuations.

The reasons for this situation are complex: on the one hand, the global macroeconomic environment is uncertain, and investors are generally cautious; on the other hand, the short-term behavior of funds has increased significantly, and investors have an obvious wait-and-see attitude. The current situation is also exacerbated by liquidity problems in the cryptocurrency market itself, and these factors combine to make it difficult for the market to fundamentally improve in the short term.

In the current context, people are paying attention to when the cryptocurrency market will usher in a surge in the future. Analysts have given different predictions on the future market trend.

Some analysts believe that the current "dry" state of the market may be laying the foundation for future gains. They regard the current market "dullness" as the calm before the storm. The relatively low trading volume at this time means that market sentiment is relatively stable, and funds are also taking a break to accumulate momentum for the next wave of gains.

However, the key to the resumption of the upward trend of cryptocurrency prices lies in the promotion of major positive factors, such as the improvement of the regulatory environment and the large-scale entry of institutional funds. Only when these supporting factors are in place can the market get rid of the current downturn and usher in a new round of price surges.

Of course, some analysts hold a pessimistic view. They believe that the rapid rise of the cryptocurrency market has triggered extremely high expectations, but the actual situation has not met the widespread expectations, which may make the current bull market particularly difficult.

Currently, Bitcoin has formed a "double top" pattern, which is often seen as a signal that prices may fall further. If the market falls below key support levels, Bitcoin may continue to fall to around $50,000. Therefore, in the next period of time, the cryptocurrency market may remain in a sideways state for a long time.

Summarize

In general, the cryptocurrency market is in a stage full of challenges and opportunities. Faced with the influence of multiple unfavorable factors, the market may find it difficult to get rid of the overall downward trend in the short term. However, the future trend will depend on many factors such as the macroeconomic environment, regulatory policies and investor sentiment.

In the long run, the development momentum of the cryptocurrency industry remains strong. After the current adjustment, the market may usher in a new stage of growth. Although the market is still warm, there are still many positive factors gradually brewing. In this context, maintaining cautious optimism, keeping observation and actively participating at all times may be the wisest strategy in the current market environment.