Bitcoin
Bitcoin Price Drops to $62K, Optimistic Options Traders Bet on $80K by End of Month
(Kitco News) –Bitcoin (Bitcoin) bulls are struggling to hold support at $62,000 in early Wednesday trading after bears successfully breached the $63,000 level late on Tuesday as they push to regain lost ground on battle for control of price action.
Weakness in financial markets returned after Minneapolis Federal Reserve Bank President Neel Kashkari said the central bank is likely to keep interest rates where they are until policymakers are sure inflation is on track to rise. your goal.
“The most likely scenario is that we are going to sit here for a long period of time,” he said while speaking at the Milken Institute Global Conference on Tuesday. “If inflation starts to fall again or we [see] some sharp weakening in the labor market that could lead us to reduce interest rates.”
Kashkari also addressed the possibility of a rise in interest rates, which gave many investors a reason to pause and reevaluate their exposure to the markets.
“Or if we eventually become convinced that inflation is embedded or consolidated now at 3% and that we need to go up, we would do that if necessary,” Kashkari said.
The major indices opened lower on Tuesday following the aggressive statement, but have returned to neutral or positive territory at the time of writing.
Data provided by TradingView shows that Bitcoin hit a low of $61,755 shortly after the US market opened, but has since rebounded above $62,600.
BTC/USD Chart by TradingView
At the time of writing, BTC is trading at $62,210, down 2.6% on the 24-hour chart.
“When the price of Bitcoin fell 12% in a few days last week, even the most bullish crypto investors feared the worst. Which makes its strong recovery since hitting a two-month low on May 1 all the more remarkable,” said Neil Roarty, analyst at the investment platform. Stock Analysis.
“The price of Bitcoin is now comfortably above $60,000, helped in no small part by confirmation from the US Federal Reserve that interest rate hikes are unlikely in the near future,” he added. “But there is debate about what happens from here.”
“The most bullish options traders are targeting $100,000 by the end of this year. To reach that price, Bitcoin will have to show even greater resilience in the face of increasing regulatory scrutiny and greater political and economic uncertainty,” said Roarty. “Given the gains of recent months, many will support Bitcoin to do just that.”
Macro pressures weigh on crypto market
“The recent selling pressure appears more macroeconomic than Bitcoin-focused,” James Davies, co-founder and CPO of Crypto Valley Exchange, said in a note to Kitco Crypto. “Tech stocks fell and corporate AI performance failed to live up to expectations.”
“In the US, the DTCC haircut has reduced the expected near-term attractiveness of ETFs, reducing speculative views of additional cash inflows in the near term,” he said. “With the Fed all but ruling out a rate hike in response to overly persistent inflation, the U.S. position is bullish across the economy in the near term.”
“More distant transitions, with the Indian elections and Indonesian government changes bringing uncertainty in markets with large Bitcoin holdings, it is certainly a wait-and-see time for those with significant holdings to get a bearing on the market as a whole,” Davies noted.
Referencing open interests data provided by Deribit, Davies said options traders “appear to have significant bets that Bitcoin will rise to $80,000 by the end of May, which would be a new all-time high.”
Given the recent pullback below $60,000, “some of these may be historic bets, but there hasn’t been much coverage of their positions, so some faith remains,” he said. “Even more convincing, however, is the increasing concentration of open interest around the $100,000 level for the end of July. If the Runes have the impact that many believe they will, perhaps this psychological level could actually be within reach much sooner than many expected. Overall, options paint a similarly mixed picture, with short-term volatility the main expectation.”
As for what could help reignite bull market momentum, Davies noted that “Bitcoin has a strong base for growth, which includes the recent halving, which often tends to lead to prices appreciating over the next year and seeing the Bitcoin reaches new highs.”
Other bullish factors include “the introduction of Runas bringing more functionality to Bitcoin, including DeFi functionality, and the recent launch of spot Bitcoin ETFs in Hong Kong, perhaps with greater value for international investors than those with 100% collateral cuts.” In the USA”.
“After the recent rally, a lot of capital has been invested in good projects that will start launching during the summer, perhaps creating a second DeFi summer,” he said. “Even though this will occur more in the autumn and winter of 2024, projects that improve capital efficiency by replacing outdated metrics such as total value locked (TVL) were the subject of DAS London and Token 2049 in Dubai. There are many positive things to see in Bitcoin and the crypto ecosystem created in the last bull run.”
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
RIOT, MARA and CLSK shares at risk
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.
Bitcoin
Michael Saylor Issues Statement on Bitcoin Amid Crypto Market Sell-Off by U.Today
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.
Bitcoin
Bitcoin and Ethereum in GTA 6? Still rumors — for now
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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