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Bitcoin’s Drop Leads to Increased Interest Among Buyers
Bitcoin (BTC), the world’s most popular cryptocurrency, has fallen to nearly $54,000 over the past week. While it has given up all of its gains from previous weeks, there is some silver lining as the low prices have led to increased interest among investors, which in turn has given way to net inflows of $143.1 million into U.S.-based spot Bitcoin exchange-traded funds (ETFs). BTC’s consolidation point is widely expected to be between $53,000 and $57,000 this week.
Before proceeding further, readers should note that the cryptocurrency market in general and coin prices are extremely volatile by nature. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. This article is intended to help investors stay abreast of the current market scenarios and the biggest events that have already taken place, as well as some upcoming events that are worth noting. Investors are advised to do their own research before making any decisions.
Cryptocurrency prices in the last week
Last Monday (July 1), the total cryptocurrency market capitalization was $2.33 trillion. The price of BTC was around $63,200. The price of ETH was around $3,480.
A week later, the overall market capitalization fell to $2.03 trillion.
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The total volume of DeFi is $4.74 billion, which is 7.15 percent of the total market volume in 24 hours. In the case of stablecoins, the total volume is $61.4 billion, which is 92.61 percent of the total market volume in 24 hours. According to CoinMarketCap, the overall fear and greed index of the market stood at “Fear” with 36 points (out of 100).
At the time of writing, BTC dominance was 53.70%.
Over the past seven days, Bitcoin has reached a high of $63,643.96 (on July 2) and a low of $54,065.33 (on July 5).
Ethereum, on the other hand, recorded a high of $3,485.83 (July 1) and a low of $2,854.15 (July 5).
Cryptographic Events to Note
Paraguay is quickly becoming a popular destination for Bitcoin mining operations, thanks to its cheap and abundant hydroelectric power. This shift began in 2018, with miners attracted by the low-cost power sourced primarily from the Itaipu Dam, one of the largest hydroelectric dams in the world.
Interest in Paraguay as a Bitcoin mining haven has increased significantly in 2021 following China’s crackdown on cryptocurrency mining. This ban has prompted a mass migration of mining operations from China to more favorable regions, with Paraguay emerging as the top choice due to its energy advantages.
Additionally, Twitter founder and billionaire entrepreneur Jack Dorsey has predicted a future where Bitcoin will surpass the U.S. dollar to become the world’s leading currency. He envisions the cryptocurrency reaching a staggering $1 million by 2030. Dorsey highlights Bitcoin’s decentralized structure, arguing that it has the ability to democratize financial systems and reduce dependence on conventional banks.
Dorsey, a well-known proponent of digital currencies, suggests that Bitcoin’s unique attributes make it a strong candidate to revolutionize global finance. The shift to Bitcoin, he says, could lead to a more equitable and accessible financial landscape.
Finally, in a strategic financial move, the German government sold 1,400 Bitcoin from its reserves, bringing the nation’s total holdings from 41,226 BTC to 39,826 BTC. This decision comes as Bitcoin has seen a 1.7 percent decline against the U.S. dollar over the past 24 hours, with its current value hovering just above $57,000. The sale highlights the government’s ongoing shifts in cryptocurrency strategies amid fluctuating market conditions.
What Cryptocurrency Traders Are Saying About the Current Market Scenario
Mudrex co-founder and CEO Edul Patel told ABP Live: “Bitcoin is trading at $55,000 after falling to $53,000 last week. BTC has not gathered enough momentum for a sharp move higher. The ongoing battle between bulls and bears suggests that Bitcoin will likely consolidate between $53,000 and $57,000 this week. Lower price levels continue to attract buyers, providing some support in this range.”
WazirX Vice President Rajagopal Menon expressed his view, “Bitcoin (BTC) has been in a tug-of-war between bulls and bears over the past week. Buyers are aiming to keep the price in the $56,552-$73,777 range, while sellers took the price close to $53,500 on July 5. The lower levels attracted buyers, resulting in net inflows of $143.1 million into US-based Bitcoin spot ETFs. Crypto experts suggest that this dip is a buying opportunity. Bitcoin’s decline has increased selling in several altcoins, but some are holding strong support levels, ready to lead the recovery if Bitcoin moves towards $60,000. Despite the bearish momentum, the positive RSI divergence suggests a slowdown in the downtrend. A break above the 20-day EMA could signal a sustained recovery.”
Disclaimer: Cryptocurrency products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any losses arising from such transactions. Cryptocurrency is not legal tender and is subject to market risks. Readers are advised to seek expert advice and carefully read the offering documents along with relevant relevant literature on the subject before making any investment. Cryptocurrency Market forecasts are speculative and any investment made will be at the sole risk and cost of the readers.