According to the latest forecasts, in the month of July, the price performance of Bitcoin (BTC) and Ethereum (ETH) could be strongly influenced by a series of economic and market factors.
Ryan Lee from Bitget offers a detailed analysis of the main elements that could determine the trends of these two giants of cryptocurrencies. Let’s see all the details below.
Summary
What are the price predictions for Bitcoin and Ethereum in the near future?
As anticipated, Ryan Lee of Bitget has released important forecasts regarding the price trend of the two well-known cryptos Bitcoin and Ethereum. One of the main factors to consider, according to him, is the macroeconomic environment.
Recently, in fact, the net liquidity index of the Federal Reserve (FED) has exceeded 6.5 trillion dollars, releasing 400 billion dollars of liquidity into the market since the end of June.
This level of liquidity is the highest in the last two years. Furthermore, with the prospect of future interest rate cuts, market liquidity is expected to become even more abundant. Thus favoring a bull trend in the cryptocurrency market.
Another positive indicator for the cryptocurrency market is the increase in the market cap of stablecoins, which went from 160 to 162 billion dollars in June. This increase indicates a net inflow of capital into the cryptocurrency market.
Despite a contraction of the overall market cap in June, the increase in stablecoins suggests that leverage in the cryptocurrency market is currently low, leaving room for further bull movements in the future.
Key events: Mt. Gox refunds and spot ETFs on ETH
Moving forward, we see two fundamental events that could significantly influence the prices of BTC and ETH in July. First of all, Mt. Gox has announced that it will start reimbursing BTC and BCH at the beginning of July.
This refund has raised fears of significant selling pressure, as Mt. Gox has moved 7 billion dollars of assets on the chain. A factor that could potentially cause a substantial drop in BTC prices.
D’altro canto, i progressi sull’ETF Spot su ETH potrebbero avere un impatto positivo su Ethereum. Alla fine di maggio, la SEC ha approvato il deposito 19b-4 e recentemente, Fidelity, 21Shares e Grayscale hanno presentato i moduli S-1 dell’ETH Spot ETF alla SEC.Â
It is very likely that the ETF ETH will be officially launched on the US capital market in July. Thus leading traditional funds to directly purchase ETH and potentially determining a bull trend for ETH.
In summary, it is expected that in the month of July the price range of BTC will be between 58,000 and 73,000 dollars, while the price range of ETH will be between 3,100 and 4,500 dollars.
It is likely that the ETH/BTC exchange rate will continue its upward rebound, supported by the macroeconomic factors and market events described.
These developments could determine an interesting dynamic for investors and enthusiasts in the cryptocurrency sector.
Bitcoin drops to $61,000: brief analysis of the causes of the crash
Bitcoin has recently experienced a significant price drop, falling towards the $61,000 level and hitting a new monthly low.
Various factors have contributed to this decline, including mining activities, Federal Reserve policies, the lack of new inflows, and market indicators.
BTC miners play a crucial role in the recent decline. There has been a significant increase in sales from old wallets, predominantly held by miners, following the recent Bitcoin halving event, which cut daily production from 900 to 450 Bitcoin.
The Bitcoin miner reserves have dropped to the lowest levels in the last 14 years, with a decrease of 50,000 units since the beginning of the year.
This month, the miners sold over 30,000 BTC, worth about 2 billion dollars, mainly on the exchanges, directly contributing to the price drop.
Furthermore, the German government has moved 600 million dollars of Bitcoin to the exchanges, selling 200 million dollars in a single day.
With holdings of approximately 3 billion dollars in Bitcoin, this sudden sell-off, likely induced by financial requirements amid economic pressures, has had a significant impact on the market.
Finally, on Thursday, the spot Bitcoin ETFs listed in the United States recorded the fifth consecutive day of outflows, totaling over 900 million dollars for the week.
