Waiting for the last bitcoin mile

July 11, 2022

Montana Lending

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Bitcoin rose 12.6% to end near $21,600 but rebounded from gains in the $20,500 area early in the day, registering a decline of 3.9% in the past 24 hours. Ethereum essentially copies the momentum of the first cryptocurrency, losing 3.8% in 24 hours to $1150. The top 10 altcoins are losing between 2.4% (BNB) and 5.5% (Solana).

The total crypto market cap, according to CoinMarketCap, rose 5.8% over the week to $916 billion. Bitcoin’s dominance index climbed 0.6% to 42.8% over the same period.

The Cryptocurrency Fear and Greed Index rose 13 points for the week to 24, but fell 2 points on Monday and remains in “extreme fear”.

BTC’s rise last week was halted by the 200-week moving average, now rising near $22,500. Bitcoin continued to move sideways for three weeks near the critical $20,000 level, the previous cycle high.

BTC has never fallen below these levels before, so it now has support from buyers confident in the long-term growth of the premier cryptocurrency. Another supporting factor was the rebound in financial markets, where the new semester was greeted by increased buying.

However, as always in recent months, many questions remain about the sustainability of the rebound in the context of a sharp increase in interest rates by the Fed and an economic slowdown.

Rockefeller International Managing Director Ruchir Sharma believes that the deleveraging process is not over and that BTC could fall further over the next six months as the stock market declines.

Galaxy Digital CEO Michael Novogratz says the decline in the cryptocurrency market is about to be over. However, there may be a final “tug” of the bears shortly. He pointed out that he doesn’t believe BTC will fall to $13,000.

Cryptocurrency lending service Celsius has transferred 25,000 wBTC tokens worth $528 million to the FTX exchange. The market fears that Celsius will sell off the tokens and drive down the bitcoin exchange rate. According to Arkham, Celsius lost $390 million in client funds on investments in DeFi and NFT.

Nobuaki Kobayashi, the trustee of the bankrupt Mt.Gox exchange, has begun preparations to repay creditors. The situation in the market could worsen if 150,000 BTC were distributed to MtGox users and immediately flooded the market.

The US Federal Deposit Insurance Corporation (FDIC) is investigating Voyager Digital. According to the agency, the cryptocurrency broker misled users by claiming that their assets were protected by the agency’s program.

This article was written by FxProAlex Kuptsikevich, Senior Market Analyst.