Written by: Mary Liu, BitpushNews
The crypto market and tech stocks failed to rebound after strong U.S. GDP data and cooling personal consumption expenditures (PCE) inflation data were released on Thursday.
GDP data released on Thursday showed that the U.S. economy grew 2.8% in the second quarter of 2024, exceeding economists' forecast of 2%, and inflation pressure measured by the personal consumption expenditures (PCE) price index fell from 3.4% to 2.6%, indicating that it is moving towards the Federal Reserve's 2% inflation target.
James Knightly, an economist at ABN Amro, said U.S. consumer spending will slow in the second half of 2024. He added: "Business surveys certainly point to a weaker outlook and today's data does little to shake the market's confidence in a September rate cut by the Fed."
Interest rate traders raised the odds of a September rate cut to 85.7%, according to the Chicago Mercantile Exchange's (CME) FedWatch tool.
As of the close of the day, major U.S. stock indexes were mixed, with the Dow Jones Industrial Average closing up 0.20%, the S&P 500 and the Nasdaq Composite Index falling 0.51% and 0.93%, respectively.
According to Bitpush data, Bitcoin fell below the $65,500 support level in the early hours of Thursday morning, hitting a low of $63,420 in the afternoon before bullish forces pushed it back above $65,000. At the time of writing, Bitcoin was trading at $65,857, up 0.43% in 24 hours.
Ethereum fell nearly 5% in 24 hours, falling below $3,100 on the day. Since the listing of the spot Ethereum ETF, ETH has fallen 8.2% in the past week.
Altcoins fell across the board, with only Galxe (GAL) among the top 200 tokens to rise, up 15.4% and trading at $3.55. Among the falling tokens, BinaryX (BNX) led the decline, down 19%, Blast (BLAST) down 15.2%, and ether.fi (ETHFI) down 14.2%.
The current overall cryptocurrency market cap is $2.3 trillion, with Bitcoin accounting for 55.4%.
A whale that has been dormant for 7 years transferred 92,500 ETH, or is it related to the Ethereum Foundation?
Blockchain trackers including Whale Alert detected that at 03:39:23PM UTC on July 25, an address transferred more than 92,000 ETH, worth approximately $290 million, after being dormant for seven years. These tokens had been stored at the same address since 2017.
Arkham Intelligence’s on-chain data suggests that these funds may be related to the Ethereum Foundation, with the address being marked as a wallet suspected to be associated with the Ethereum Foundation (0xe93232a). Other community members have suggested that these funds may be related to early donors to the organization.
The data shows that the wallet initially received 96,474 ETH from the Ethereum Foundation at 12:21:51 UTC on September 1, 2015, worth $130,320.
Currently, these tokens are idle in the wallet "0xe481a22". Although it is not certain whether these tokens come from the Ethereum Foundation, as of press time, these funds have not been sold or transferred to exchanges. The transfer occurred during the ETH price drop and coincided with the launch of the spot Ethereum ETF.
BTC retests key support level
Market analyst TradingShot said: “Bitcoin today tested the 1D MA50 (blue trendline in the chart below) for the first time since July 19, which is the most significant ‘break and pullback’ retest since October 11, 2023. This is the last time BTC retests the 1D MA50 as support after the recent breakout, following the 21-month ascending channel bearish phase from April 14, 2023 to September 11, 2023, which began at the bottom of the previous bear market cycle in November 2022.”
“Despite slightly breaking below that level on the retest, it has managed to sustain a candle close above it and kick-start a rally from October 2023 to March 2024,” he said. “Hence, if the same closing conditions hold, we expect a similar rally to begin, which technically would be a new bullish trend that could eventually reach the psychological benchmark of $100,000.”
“It must also be said that next week’s Fed rate decision or at least the hint from the September meeting will undoubtedly have a huge impact on it,” TradingShot said.
Market analyst SatochiTrader also believes that the current weakness is only temporary and believes that Bitcoin will start to move higher once the latest round of FUD is eliminated.
SatochiTrader said on the X platform that "BTC has a large number of DCA (dollar cost averaging) whales who will do everything they can to protect price trends. Our strategy is to hold BTC during active cycles. News about artificial intelligence, Trump, China, and miners may temporarily affect the market, but it will not affect the market permanently."
He added that the outlook for Bitcoin remains “positive and could rise to $74,000 over time.”
TradingView user The_ForexX_Mindset urged traders to remain calm despite the recent sell-off as technical data suggests Bitcoin will soon move higher.
He said: "Don't panic, he knows exactly what will happen next, many traders sold in a state of panic. Once this is over, the general rules will return to normal. Those who own ALTS, the price will go back up. Many people sold out of fear. Greed will come back."
And market analyst Rekt Capital said that Bitcoin is now in the process of retesting the $65,000 level in a volatile manner.
“A daily close above $65,000 (blue) is now needed to make the retest successful and keep prices within the $65,000-71,500 region (red),” he said.
