According to the latest forecasts, in July, the price performance of Bitcoin (BTC) and Ethereum (ETH) could be strongly influenced by a series of economic and market factors.
Ryan Lee by Bitget offers a detailed analysis of the main elements that could determine the trends of these two cryptocurrency giants. Let’s see all the details below.
What are the price predictions for Bitcoin and Ethereum in the near future?
As anticipated, Ryan Lee of Bitget has released important predictions regarding the price trend of the two well-known cryptocurrencies Bitcoin and Ethereum. One of the main factors to consider, according to him, is themacroeconomic environment.
In fact, the Federal Reserve’s (FED) net liquidity index recently exceeded i 6.5 trillion dollars, releasing $400 billion 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. Therefore favoring an upward trend in the cryptocurrency market.
Another positive indicator for the cryptocurrency market is the increase in the stablecoin market cap, which rose from $160 billion to $162 billion in June. This increase indicates a net capital inflow in the cryptocurrency market.
Despite a contraction in overall market cap in June, the rise in stablecoins suggests that leverage in the cryptocurrency market is currently low, leaving room for further upward movement in the future.
Key Events: Mt. Gox Redemptions and ETH Spot ETFs
Moving forward, we see two key events that could significantly impact BTC and ETH prices in July. First of all, Mt. Gox announced that it will begin redeeming BTC and BCH in early July.
This redemption has raised fears of significant selling pressure, as Mt. Gox has moved $7 billion in assets onto the chain. A factor that could potentially cause a substantial drop in BTC prices.
On the other hand, progress on the ETH Spot ETF could have a positive impact on Ethereum. In late May, the SEC approved the 19b-4 filing and recently, Fidelity, 21Shares and Grayscale filed Forms S-1 of the ETH Spot ETF with the SEC.
The ETH ETF is very likely to be officially launched on the US capital market in July. Thus leading traditional funds to purchase ETH directly and potentially leading to an upward trend for ETH.
In summary, the BTC price range in July is expected to be between $58,000 and $73,000while the price range of ETH will be between $3,100 and $4,500.
The ETH/BTC exchange rate is likely to continue its upward rebound, supported by the described macroeconomic factors and market events.
These developments could lead to an interesting dynamic for investors and enthusiasts in the cryptocurrency sector.
Bitcoin drops to $61,000: brief analysis of the causes of the collapse
Bitcoin has recently seen a significant drop in price, falling towards the level of $61,000 and hitting a new monthly low.
Several factors contributed to this decline, including mining activities, Federal Reserve policies, lack of new inflows, and market indicators.
BTC miners play a crucial role in the recent decline. There has been a notable increase in sales from old wallets, predominantly held by miners, following the recent event of halving of Bitcoinwhich cut daily production from 900 to 450 Bitcoin.
Bitcoin miner reserves have fallen to a 14-year low, down 50,000 units since the start of the year.
This month, miners have sold over 30,000 BTC, worth around $2 billion, mostly on exchanges, directly contributing to the price collapse.
Furthermore, the German government has moved 600 million dollars of Bitcoin on exchanges, selling $200 million in a single day.
With holdings of around $3 billion 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, U.S.-listed spot Bitcoin ETFs recorded their fifth consecutive day of outflows, totaling more than 900 million dollars in the week.
