Bitcoin (BTC) is falling by 2.0% to $65,200,
although it was 3.7% lower at $64,034, the lowest since May 15. Positive
developments in Ethereum have supported the crypto king.
The major reason for the decline in cryptos is
fund outflows. The Spot BTC-ETF from BlackRock (IBIT) added $208.5 million last
week, but this inflow was largely overshadowed by losses of $68.4 million from
FTBC by Fidelity and $258.4 million from GBTC by Grayscale. Overall, fund
outflows hit $600 million last week, marking the first negative week out of the
last six weeks and the largest week of outflows during the last three months.
Moreover, this week, three major spot BTC ETFs have already lost $130.9 million
combined, more than during the whole last week.
The nearest support for BTC is at
$59,000-61,000, or another 8.0% to the downside. The coin is unlikely to go
lower. Instead, from a technical perspective, BTC may climb to $78,000-80,000
by the end of July. This idea is supported by the post-halving rally that may
emerge during the next couple of months. This rally may push BTC prices to
$100,000-110,000. The 2024 presidential campaign strongly advocates this
scenario. Both Republicans and Democrats are appealing to crypto enthusiasts in
the United States. Republican candidate Donald Trump is leading the rally by
claiming that the U.S. should dominate in cryptocurrency mining. The news came
two months after the creation of the DJT token on the Solana blockchain. This
token surged by 180% recently after a tweet on the X platform suggested that
Trump’s 18-year-old son, Barron, could be behind this token.
Democrats have to respond. The chief crypto
asset watchdog in the U.S. Securities and Exchange Commission (SEC) has
resigned recently after leading an uncompromised battle with the crypto
industry for the last nine years. Just after this “sacrifice,” the SEC
announced the closing of the investigation against Ethereum 2.0. This is a bold
sign that Ethereum is now considered a commodity, not a security. Thus,
Ethereum could now be officially considered as the crypto prince. Its price
immediately surged by 3.2% to $3583 on the news. According to Polymarket, Joe
Biden and Donald Trump won’t make a traditional handshake at the debate. Such
personal animosity between candidates favors the crypto industry. The harder
the struggle, the more the industry can gain before the elections.