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Bitcoin Drops to $59,100 – Should You Buy the Dip Now?
- The cryptocurrency market is experiencing a sharp sell-off, as Bitcoin has fallen to the $50,000 mark.
- Part of the concern is that the spot Bitcoin ETF has continued to lose money, impacting prices.
Bitcoin (BTC) continues to see a substantial decline in its price, falling to $59,100 in the early hours of Thursday. For most BTC investors, the burning question is whether or not to buy the dip or wait for a further decline to $50,000 or a surge to $70,000.
Italian: https://www.youtube.com/watch?v=gn7oQfvELmQ
Bitcoin Faces Heavy Selling
Data from Santiment, an on-chain analytics platform, shows that BTC has faced numerous challenges over the past two months.
📉 Bitcoin has now fallen to a 2-month low, with most altcoins faring much worse. With many traders buying the dip when BTC was approaching $60K, longs have been liquidated aggressively over the past couple of hours. This is also true for other top caps like Ethereum and Solana. Italian: https://t.co/OAgTPFmS6T photo.twitter.com/ivDW7GaUxB
— Santiment (@santimentfeed) July 4, 2024
During this period, the leading digital asset faced massive liquidations, leading to a decline in its price. Altcoins, including Ethereum (ETH) and Solana (SOL), also experienced a similar price drop. According to Ethereum, the cryptocurrency plunged to $3,200, despite expectations of a bull run, following the scheduled launch of spot ETFs by July 15.
However, Santiment reported that crypto enthusiasts see the current price decline as an opportunity to buy the dip. The firm, however, advised investors to wait for the initial push before making further purchases. Santiment believes that the best time to buy cryptocurrencies is when traders become impatient and skeptical.
The firm cited an instance where many traders bought the dip when BTC fell to $60,000, shortly after massive long-position sell-offs. This pattern was also followed by Ethereum and Solana, which saw even worse liquidations than BTC.
Santiment added that altcoins with extremely low funding rates are the best ones to buy right now. The firm highlights Balancer (BAL), Chromia (CHR), and Celer (CELR) as projects with strong short sales on the Binance exchange in the last 24 hours. The firm’s sentiments are based on the premise that short liquidations lead to price increases.
Bitcoin Whale Loses $20 Million
The recent volatility in the Bitcoin market has led to a whale investor losing around $20 million. According to details from on-chain data provider Lookonchain, a large Bitcoin whale or institution recently deposited 1,800 BTC (around $106 million) to Binance.
The whale deposited 1,800 $BTC($106 million) to #Binance back at a loss 40 minutes ago.
He deposited 5,281 $BTC($323.2 million) to #Binance since June 27, with a loss of approximately $20 million!Italian: https://t.co/VWgcfiOpxU photo.twitter.com/WESV8GkfHV
— Look at Chain (@guardareachain) July 4, 2024
This whale investor has been on a buying spree, accumulating 5,281 BTC ($323 million) on the exchange over the past week at an average price of $61,196. Despite their sizable holding now at 6,068 BTC ($358 million), the investor reportedly took a $20 million hit in their latest transaction.
The other side of the coin, Bitcoin ETF Spots continued to lose money. Daily net outflows on Wednesday, July 3, reached $20.5 million. Grayscale’s GBTC led the outflow parade with $27 million, while Fidelity’s FBTC stood out as the outlier bright spot with inflows of $6.5 million. All other ETFs remained on the sidelines with zero inflows on Wednesday.
Meanwhile, BTC continues to see further decline in its price. At the time of writing, BTC is trading at $57,702, showing a 5% decline in 24 hours. Trading volume has increased by 58.5% to $36 billion, with a market cap of $1 trillion.
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