Bitcoin
Bitcoin Back Above $62K: Is the Market Heading for a Bull Run or a Rate Hike Reality Check?
(Kitco News) – Volatility persisted in the crypto market on Thursday as the day began with prices in a downtrend, only for the outlook to improve in the afternoon as Bitcoin (Bitcoin) recovered support at $62,000, while some altcoins recorded double-digit spikes.
“Bitcoin has recovered from recent lows this morning and is poised to challenge its previous peak of $65,000,” said analysts at Secure Digital Markets. “Global trading volume, spanning cash and derivatives markets, declined for the first time in seven months, falling 44% to $6.58 trillion. This drop is attributed to increased geopolitical tensions and reduced investments in US-listed spot ETFs, which have cast a shadow over the cryptocurrency market.”
Stocks rose after the latest unemployment claims reading came in at 231,000, an increase of 22,000 from the previous week and the highest level since August.
This shows that the labor market continues to cool, which many took as a positive sign that 2024 could still see one or more interest rate cuts, despite the recent series of Fed officials repeating the possibility that rates interest rates will have to remain higher for longer, citing resilient inflation.
However, Bert Dohmen of Dohmen Capital Research said that the recent sharp increase in the M2 money supply It means the Federal Reserve will not be able to deliver on expected interest rate cuts this year and investors should start preparing for that possibility.
Dohmen suggested that the Fed is “stuck between a rock and a hard place” as it is forced to finance record Treasury deficits while continuing to combat stubbornly high inflation.
“The Fed is being forced to step on the gas to allow it to finance record US Treasury deficits,” he said. “They know this is inflationary, but they have no alternative.”
At market close, the S&P, Dow and Nasdaq ended in the green, up 0.51%, 0.85% and 0.27%, respectively. The DXY is down 0.5% from its daily high amid the turnaround in markets, trading at 105.218 at the time of writing, while the 10-year US Treasury yield is down 142 basis points from its daily high to 4.457%.
Data provided by TradingView shows that Bitcoin recovered from an early morning daily low of $60,623 and rose 3.4% to reach a daily high of $62,663 before pulling back towards support at $62,500.
BTC/USD Chart by TradingView
At the time of writing, BTC is trading at $62,395, up 1.15% on the 24-hour chart.
Sale of miners puts pressure on Bitcoin
The post-halving reduction in Bitcoin’s issuance rate is still making headway in the crypto market as miners struggle to cope with the decline in revenue.
“We are seeing miners overselling Bitcoin now on the open market to help smooth their gains, which, in combination with a pause in global liquidity growth, is weighing on prices,” said Rennick Palley, founding partner at crypto venture capital . company Stratos, in a note to Kitco Crypto.
“Earlier this year, the market expected up to seven rate cuts. Now, only one is expected, which hasn’t happened yet,” noted Palley. “Inflation has started to rise again recently, although we expect it to ease in the second half of the year.”
“While the Fed meeting last week was largely peaceful in light of recent inflation numbers, one thing Powell mentioned was a slowdown in QT, which signals the beginning of the end of restrictive monetary policies,” he added. “But I think that hasn’t really started to flow into the market yet.”
Palley suggested that without other major positive catalysts on the horizon, the next leg of the bull market will likely occur when the Fed finally decides to cut interest rates, although the timing is uncertain.
“As Bitcoin is highly sensitive to liquidity flows, as soon as the money printer turns on again, it will be ready for the Bitcoin rush,” he said. “Again, three months from now, or six months from now, I’m not sure, but given that it’s an election year, I think it’s highly likely that we’ll find ourselves in a much more accommodative liquidity stance from the Fed going forward. coming months. And as a result, Bitcoin will continue to perform well.”
According to market analyst Rekt Capital, the start of the next uptrend may have already begun, as “over the last year and a half, long periods of decline to end a correction of more than -20% have often been the key to a future price reversal.” .”
The fact that “Bitcoin is still simply holding the low range as support following last week’s negative wick” suggests the bottom may be in sight, he added.
And even the crypto bear il Capo of Crypto thinks that Bitcoin may be forming a solid support base at the current level and may soon start trending higher.
“After deviating below the low range, the price bounced, touched resistance and is now returning to an interesting support zone,” he said. tweeted. “This could be forming the first higher low.”
“There is strong demand between $59,000 and $61,000 and indicators look mostly bullish, so a recovery is likely,” he said. “If BTC breaks the $65K resistance, I would look for $68K to $69K as a first target and $74K to $75K as a second target. Bullish invalidation would be a bearish PA in the previous liquidity zone.”
Altcoins start to climb higher
It was a mixed day of trading in the altcoin market, with a slim majority of tokens in the top 200 recording gains.
Daily cryptocurrency market performance. Source: Coin360
A trio of double-digit gainers led the field, with Akash Network (AKT), Livepeer (LPT), and Arweave (AR) seeing increases of 17.4%, 15.3%, and 11.9%, respectively. Render (RNDR) and Toncoin (TON) also posted 11% gains. FTX Token (FTT) was the biggest loser, falling 7%, while Tellor (TRB) lost 5.4% and GuildFi (GF) fell 4.2%.
The total cryptocurrency market value is now $2.31 trillion and Bitcoin’s dominance rate is 53.3%.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a request to carry out any exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.
Bitcoin (BTC) Mining stocks like Riot Platforms (RIOT), Marathon Digital (MARA) and CleanSpark (CLSK) retreated in pre-market trading as BTC retreated.
RIOT, MARA and CLSK all fell more than 2%, while other crypto-related stocks such as MicroStrategy (MSTR) and Coinbase (COIN) fell 1.5%.
Bitcoin sell-off continues
Crypto-linked stocks retreated as Bitcoin resumed its downtrend on Wednesday. After rising to $63,750 on Monday, BTC is hovering at $60,0000 and it is unclear whether it will recover.
More importantly, Bitcoin is dangerously close to the crucial support at $58,273, which is the 200-day Exponential Moving Average (EMA). The next support level for Bitcoin is $56,426, representing its lowest level in May.
Bitcoin Price Chart
If Bitcoin drops below this price, it will be a sign that the bears have prevailed, which could take it to the $50,000 level, if not below.
This decline happened after a whale deposited nearly 2,000 Bitcoins to Binance in two separate transactions. While this isn’t always the case, deposits to exchanges often happen when holders are exiting their positions.
The whales’ action coincided with a period in which the German government continues to sell off its Bitcoin holdings. It transferred $52 million worth of coins to exchanges on Tuesday.
As a result, data from CoinGlass shows that the volume of Bitcoin balances on exchanges has started to increase. The volume rose to 2.49 million on Tuesday, from last month’s low of 2.47 million.
Bitcoin balances on exchanges
Bitcoin Mining Companies at Risk
If the Bitcoin sell-off continues, it will put Bitcoin mining companies like Marathon, CleanSpark, and Riot Platforms at risk. These companies have tended to have a close correlation with Bitcoin in the past.
This drop is happening a few months after the halving event, reducing the amount of Bitcoins that miners receive.
To compensate for this drop, most of these companies have added their mining equipment. CleanSpark has reached a hash rate of 20 EH/swhich helped her mine 445 coins in June after mining 417 coins the previous month. She did this after purchasing 5 mining sites in Georgia.
Digital Marathon mined 590 coins in June, down 40% from the same month in 2023 and flat from May.
Riot Platforms, on the other hand, focused on acquiring Bitfarms, a company that mined 189 coins in June.
U.Today – Amid an ongoing sell-off in the cryptocurrency market, Michael Saylor, a prominent advocate and president of MicroStrategy, made a statement on X (Twitter) that reverberated across the crypto space: “Just Bitcoin.”
This two-word tweet comes as the cryptocurrency market faces significant sell-offs as the price of Bitcoin plummets.
Bitcoin, the largest cryptocurrency by market value, began its decline in Tuesday’s trading session, hitting $63,223 at one point before falling further.
Losses deepened on Wednesday as investors considered remarks from Fed Chair Jerome Powell, with Bitcoin hitting intraday lows of $59,509. At the time of writing, BTC is down 2.85% over the past 24 hours to $60,274.
According to data from CoinGlass, the sell-off has resulted in a significant amount of cryptocurrencies being liquidated in the past 24 hours, totaling over $166 million. However, this has not deterred Saylor’s confidence in Bitcoin, as he reiterates his longing for the crypto asset in his tweet.
Cryptocurrency market crashes
Cryptocurrencies fell on Tuesday after Fed Chairman Jerome Powell said the central bank needs to see more progress on inflation before cutting interest rates, which are now at 5.25%-5.50%. Powell revealed at a monetary symposium in Sintra, Portugal, that the United States is moving closer to a disinflationary path.
“We want to be more confident that inflation is moving sustainably downward toward 2% before we begin the process of tapering or easing policy,” Powell said.
Market losses deepened after Wednesday’s economic releases that indicated the labor market is cooling. Recent data showed weaker-than-expected private payroll growth in June, but weekly jobless claims were higher than economists had forecast. The latest figures come ahead of the highly anticipated June nonfarm payrolls report on Friday.
As the cryptocurrency market goes through a period of uncertainty, the coming days and weeks will be crucial in determining the direction of BTC’s price.
Rumors that the long-awaited Grand Theft Auto 6 will use cryptocurrency that has been circulating for more than a year now—and they’re spinning again.
On Wednesday, a pseudonymous Crypto Twitter influencer named Gordon — apparently named after Gordon Gekko from the iconic 1987 film “Wall Street” —shared to his nearly 500,000 followers that “GTA 6 will allow cryptocurrency payments” and that “so far only Bitcoin, EthereumIt is USDT [are] confirmed.”
But in reality, no cryptocurrency has been confirmed for Grand Theft Auto 6, despite ongoing chatter about the rumors. Rockstar Games and parent company Take-Two have made no such announcements this week on the subject, nor have they made any prior announcements, and official trailers and announcements have made no mention of cryptocurrency being included.
However, the tweet — which also included a fake trailer for the game — quickly went viral, with over 500,000 views as of this writing in a matter of hours. When Twitter users asked Gordon for his sources, he would jokingly respond that his “uncle works there” or say that previous reports on the matter were “old” at this point.
But really, nothing has changed since then. DecipherGG’s reported in previous rumors in May 2023, not even since the first official trailer — which initially leaked with “BUY BTC” stamped on itApparently by the leaker in question—premiered last December.
DecipherGG reached out to Rockstar Games for comment but did not receive an immediate response.
Could Grand Theft Auto 6 implement a crypto element when it releases in 2025? It’s certainly possible, and if so, it would be a transformative moment for cryptocurrency adoption by the traditional gaming industry.
Take-Two Interactive has explored the space before, acquiring casual gaming giant Zynga in early 2022, when Take-Two founder and CEO Strauss Zelnick suggested there were “Web3 opportunities” that they could explore better as a team. Zynga has launched its first blockchain game on Ethereum, called Sugartownbut Take-Two has yet to get involved with other brands.
Rockstar Games, on the other hand, prohibited the use of cryptocurrency or NFTs on player-run Grand Theft Auto 5 servers in late 2022, following a rise in the use of NFTs to represent unique player-owned assets on modded game servers.
And given Grand Theft Auto’s satirical tone, the game may be more likely to criticize cryptocurrency and poke fun at caricatures of crypto fans and NFTs, for example, rather than trying to launch its own on-chain currency. But that’s all speculation at this point, as there are relatively few official details about GTA 6.
For now, at least, don’t believe the hype. While Rockstar Games hasn’t officially closed the door on cryptocurrency usage in Grand Theft Auto 6, it hasn’t confirmed anything about it either. However, it’s sure to remain a hot topic in the long run leading up to release, which is currently scheduled for fall 2025.
Edited by Ryan Ozawa.
Bitcoin
Crypto President Trump’s ‘Lesser’ Regulation Will Bless Coinbase’s Bitcoin Leverage, Expert Says – Coinbase Glb (NASDAQ:COIN)
Chris SenyekChief Investment Strategist at Wolfe Researchrecently expressed his opinion on the potential impact of a Donald Trump win the 2024 elections in the cryptocurrency market.
What happened: Senyek suggested that a Trump presidency could ease cryptocurrency regulations, benefiting companies like Coinbase Global Inc. COIN due to its importance Bitcoin BTC/USD Leverage.
“Trump would be less harsh on crypto regulation, and Coinbase would be a big beneficiary of that given its influence on bitcoin,” Senyek said during CNBC’s “Last Call” on Tuesday.
See too: Enhance Your Retirement Portfolio: The Benefits of Adding Cryptocurrency
Why does this matter?:Senyek’s comments come in the context of the former president Donald Trump‘s reported plans to participate at the Bitcoin 2024 convention, which could reinforce his image as a “Crypto President”.
Trump’s potential participation in the Bitcoin 2024 convention, a major event on the cryptocurrency calendar, could have significant implications for the industry.
Pratik KalaHead of Research in DigitalX Limitedhe has predicted a Trump victory in the upcoming elections, but warns that immediate cryptocurrency-friendly regulations may not be a priority.
A recent report by 10x Search explore the recent rise in Bitcoin price and its potential connection to Trump’s strong position in the 2024 election race. The report, titled “Is the Bitcoin Trump Pump Sustainable?”, highlights a 4% spike in Bitcoin’s price following the news that the president Joe Biden will remain in the race despite a poor performance in the presidential debate.
Price Action: At the time of writing, Bitcoin was trading 2.10% lower at $60,860.66, according to Benzinga Pro.
Read next:
Image created using photos from Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
News and market data brought to you by Benzinga’s APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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