Potential 'Rebound Rally': Crypto Markets May See Optimistic Shift Despite June's Turmoil
Summary:
Amid June's market turmoil, crypto intelligence platform Santiment predicts a potential "rebound rally" in crypto markets due to decreased selling pressure on exchanges. Bitcoin experienced a near 7% drop in June, similar to the trend followed by other cryptocurrencies, resulting in a $400 billion fall from the market capitalization peak of $2.5 trillion. Analyst Minkyu Woo echoes this optimism, noting that recent outflow trends indicate alleviating large-scale selling pressures on exchanges. Despite potential obstacles, such as the unlocking of $9 billion worth of BTC by the defunct Mt. Gox exchange, Bitcoin trades at around $62,950, down 0.4% over the past day.
In the aftermath of the June market swings, a potential "rebound rally" might be on the horizon for the cryptomarkets, as analysts noted a diminishing sell pressure on exchanges. Cryptocurrency intelligence entity Santiment suggested a bright prospect for July, following the capitulation of numerous small traders, as per their statement on July 2. They voiced that the existing negative market emotion in combination with trader losses could trigger the beginning of a recoil rally. Bitcoin (BTC) dropped close to 7% across June, hitting its monthly low at $59,500, according to Cointelegraph Markets Pro.
Other digital currencies saw similar trends, marked by a $400 billion drop in the crypto market capitalization from its apex of $2.5 trillion to its last month's low, as reported by TradingView. CryptoQuant's verified author Minkyu Woo shares this optimistic outlook; in a July 1 post he suggested that the sell pressures "are finally relenting."
His analysis of outflows of top Tether (USDT) from exchanges since January of last year indicates a reduction in outflows following a massive surge. The recent surge in June implies dwindling large-scale sell pressures on exchanges. Woo's comments suggest that investors seem keener on retaining their assets rather than pulling cash out of the market.
This could be interpreted as a shift towards a more optimistic investor sentiment, post the Bitcoin halving event, Woo appended. Despite the minor hurdles such as the anticipated sell pressure due to the unlocking of $9 billion worth of BTC by the now-insolvent exchange Mt. Gox, Bitcoin continues to trade roughly around $62,950, down 0.4% over the last 24 hours. The unlocking could result in selling pressure as creditors are likely to liquidate the crypto that has been trapped for a decade.
Published At
7/2/2024 8:57:22 AM
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