Bitcoin price dropped to $56,952 today, with altcoin losses exceeding 8%. Is the decline over? We are experiencing a drop beyond the billions of dollars in excess supply worrying investors. Miners and old investors joining the sales could lead to a longer series of losses in crypto. Worse, the main drop could happen tomorrow.
Cryptocurrencies May Fall
BTC may fall to the $50,000 base if sales continue, despite staying above $56,000 for now. According to CoinGlass data, Bitcoin liquidations in futures exceeded $100 million. Considering the liquidations of the last few weeks, this figure is much higher. BTC, which has been negative for three consecutive days, started the main loss series as the Asian markets opened.
Spot Bitcoin ETF has not shown abnormal exits for a while. Yesterday, there was only a net outflow of $20 million, and most of the $27 million sales came from GBTC. The $7 million difference was covered by other ETFs.
However, the main drop could happen tomorrow. BTC price fell by 5% in one day, and ETF investors will not be able to trade today. The US markets, closed for Independence Day, will open tomorrow. This could lead to excessive sales by ETF investors returning from the holiday. There is also the risk of this being priced close to today’s daily close.
Spot Bitcoin ETF
Victims of MTGOX, who have been waiting for over 10 years for returns, are starting to reclaim their assets, which have appreciated between 100 and 200 times. As of this month, 127,000 creditors will have the opportunity to sell very profitably. While the total net inflow in ETFs has fallen to $14.6 billion, we need to know that there has been a net outflow of over $1.2 billion since the June peak.
Rekt Capital wrote in his latest assessment:
“The exit was delayed due to the unsuccessful retest of the June Downtrend as new support. Still, we will look at the trend line to see if there is a change in the forward trend.”
Many investors have the opportunity to buy altcoins at last year’s mid-year prices, but most are not yet confident enough to enter due to the risk of further losses.
