Bitcoin Value Rises Amid U.S. Economic Data Release; Market Anticipates Surge in Liquidity
Summary:
Bitcoin value surged following the Wall Street start of trading on June 27, alongside the release of U.S. macroeconomic data. Despite lower than expected jobless claims, U.S unemployment data did not spark new inflation fears within the cryptocurrency sector. Noted traders identified a strong chance that upward market trends could foster liquidity above the market price. For the second consecutive day, the U.S. spot Bitcoin Exchange-Traded Funds (ETFs) reported net inflows, a positive signal for the market. Furthermore, trader Axel Adler Jr. from CryptoQuant speculated about a potential prolonged Bitcoin price drop from the high in March, based on a market behaviour comparison with end of 2019 data.
Bitcoin has seen a surge following the start of trading in Wall Street on June 27, coinciding with the release of U.S. macroeconomic data. Bitcoin, or BTC, achieved a daily high of $62,323 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView. Even with the announcement of lower-than-expected jobless claims, the unemployment data from the U.S did not create any new worries regarding inflation in the cryptocurrency market. During this period, BTC was up by 2.3%, and market players were hopeful that this upward trend would enable them to facilitate liquidity above the market price.
Noted trader, Daan Crypto Trades, while commenting on X (previously Twitter), pointed out that the majority of the liquidity lies above the lower range limit which was tested at around $59k and cleared off all the liquidity that was positioned there. Daan was keen to note the effect of the newly added supply surplus over the coming weeks.
Daan also shared a chart that displayed the levels of liquidity of BTC/USDT perpetual swap order book on Binance, the biggest global exchange. Another trader, Jelle, mentioned that despite the selling pressure from both the U.S. and German governments, the Bitcoin market has remained resilient.
Furthermore, the U.S. Bitcoin Exchange-Traded Funds (ETFs) saw net inflows for the second day in a row, which is a positive sign. The inflow was recorded at $21.4 million on June 26, which followed a $31 million influx the day prior, as reported by Farside Investors, a UK-based investment firm, and other sources.
In the medium term, Axel Adler Jr from CryptoQuant, an on-chain analytics platform, questioned the potential length of the Bitcoin price drop from the high in March. Drawing from historical patterns, Axel speculated that Bitcoin might be mimicking the trends observed at the end of 2019. Axel stated that the retracement might last up to 5 months with a maximum drop of forty-six percent, assuming history repeats itself. However, he also stated that a strong buyback of around 500,000 BTC ($31 billion) could break the cycle.
Adler also noted an 18% reduction in the Bitcoin supply, leading to a general sense of negativity among those holding Bitcoin. As always, investors and traders are urged to conduct their own research before making any financial decisions as all financial activities carry a measure of risk. This report does not provide investment advice or recommendations.
Published At
6/27/2024 5:46:33 PM
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