Bitcoin (BTC) is
currently experiencing a decline of 3.7% to $61,540 this week, recovering from
an 8.4% drop to a low of $58,406 earlier on Monday. Prices are consolidating
above a key support level at $60,000.
The crypto industry
has seen significant withdrawals, with BlackRock’s IBIT reporting net capital
inflows of only $2.9 million last week, a record low. Fidelity’s FBTC reported net
outflows of $306.2 million, and Grayscale’s GBTC saw $170.7 million in
outflows, totaling $474.0 million in industry losses for the week.
The German government
is selling 50,000 Bitcoins seized from the Movie2k.to movie piracy site
operators. The first sale of $195 million was observed last Friday, and another
900 BTC were sold on June 25. The wallet labeled “German Government (BKA)”
still holds 46,359 Bitcoins, valued at more than $2.8 billion.
Mt. Gox has announced
an impending asset distribution scheduled for the first week of July. The
exchange moved over 140,000 BTC (valued at approximately $9 billion) in May,
indicating preparations for distribution. Investors fear a sell-off as former
clients seek to capitalize on the massive profit since the hack in 2014.
Despite the market's
bearish sentiment, some companies remain optimistic. MicroStrategy recently
purchased $786 million worth of Bitcoin, expanding its significant holdings.
Some strange
coincidences are spotted in the market. There appears to be a correlation between
NVidia’s stock movements and Bitcoin prices. NVidia’s stocks dropped by 15.5%
through June 20-24 and then recovered by 6.7% on June 25, the same day Bitcoin
prices bounced. NVidia stocks are up in the premarket today by 2.5%, which
might prompt a further rise in Bitcoin prices above $63,000.
Otherwise, the current
BTC prices decline is seen temporary. More positive news are bulding around the
crypto industry to support prices. Crypto enthusiasts are supporting former U.S.
President Donald Trump in his battle for the White House. According to Polymarket,
Trump with 59% is likely to win debate with Joe Biden this Thursday. Trump
could speak at Bitcoin 2024 conference in Nashville in July. He already told
that he would advocate for bitcoin mining if he returned to the White House. Trump
expressed his willingness to accept political donations in the form of
cryptocurrency and pledged to halt what he described as "Joe Biden's
crusade to crush crypto." During the conference the former
President may expand his initiatives regarding crypto industry.
Technical perspectives
for BTC are seen very positive too. The coin is seen rising to $70,000, and
further up to $78,000-80,000 this summer. Once these targets would be met, BTC
is likely to consolidate in August. Analysts suggest that BTC may resume
climbing to hit $100,000 mark in October 2024.