Bitcoin (BTC), the world's most popular cryptocurrency, fell to nearly $54,000 last week, giving up all of the gains from the previous week, but there are some silver linings as the low price has increased investor interest, resulting in a net inflow of $143.1 million into a U.S.-based Bitcoin spot exchange-traded fund (ETF). BTC's consolidation point this week is expected to be between $53,000 and $57,000.
Before proceeding, readers should keep in mind that the cryptocurrency market as a whole and coin prices are highly volatile in nature. There is no way to know for sure how cryptocurrencies are expected to move in the future. This article is intended to help investors stay on top of the current market scenario and the biggest events that have already occurred, as well as upcoming events that are worth noting. Investors are advised to conduct their own research before making any decisions.
Cryptocurrency prices over the past week
Last Monday (July 1st), the total cryptocurrency market cap was $2.33 trillion. BTC price was around $63,200. ETH price was around $3,480.
A week later, the total market capitalization had fallen to $2.3 trillion.
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DeFi's total trading volume was $4.74 billion, accounting for 7.15% of the total 24-hour market volume. For stablecoins, the total trading volume was $61.4 billion, accounting for 92.61% of the total 24-hour market volume. According to CoinMarketCap, the overall market's Fear and Greed Index is at 36 points (out of 100), making it “fearful.”
At the time of writing, BTC's dominance was at 53.70%.
In the past seven days, Bitcoin has recorded a high of $63,643.96 (July 2nd) and a low of $54,065.33 (July 5th).
Meanwhile, Ethereum hit a high of $3,485.83 (July 1) and a low of $2,854.15 (July 5).
Notable Crypto Events
Paraguay is quickly becoming a popular destination for bitcoin mining operations thanks to its cheap and abundant hydroelectric power. The shift began in 2018, when miners were attracted to the low-cost energy provided primarily by the Itaipu Dam, one of the world's largest hydroelectric dams.
Interest in Paraguay as a Bitcoin mining haven has soared in 2021 following China's crackdown on crypto mining. The ban prompted a large-scale relocation of mining operations from China to more favorable locations, with Paraguay emerging as a first choice due to its energy advantages.
Additionally, Twitter founder and billionaire entrepreneur Jack Dorsey predicts a future in which Bitcoin will surpass the US dollar and become the world's leading currency. He predicts the cryptocurrency's value will reach a staggering $1 million by 2030. Dorsey emphasizes Bitcoin's decentralized structure, arguing that it has the power to democratize the financial system and reduce reliance on traditional banks.
Dorsey, a well-known advocate of digital currencies, has suggested that Bitcoin's unique properties make it a strong candidate to revolutionize global finance, and he believes that a shift to Bitcoin would lead to a more equitable and accessible financial environment.
Finally, the German government has taken a strategic fiscal measure by selling 1,400 Bitcoin from its reserves, reducing the country's total holdings from 41,226 BTC to 39,826 BTC. The decision comes as Bitcoin has fallen 1.7% against the US Dollar in the past 24 hours, with its current value hovering just above $57,000. The sale highlights the government's ongoing shift in cryptocurrency strategy amid volatile market conditions.
What Crypto Traders are Saying About the Current Market Scenario
Edul Patel, co-founder and CEO at Madrex, told ABP Live: “Bitcoin is currently trading at $55,000 after dropping to $53,000 last week. Bitcoin has not built up enough momentum for a sharp upswing. With the bulls and bears continuing to battle it out, Bitcoin is likely to remain in the $53,000 to $57,000 range this week. Lower price levels continue to attract buyers, providing some support within this range.”
Rajagopal Menon, Vice President, WazirX, opined, “Bitcoin (BTC) faced a tug of war between bulls and bears last week. While buyers aimed to keep the price within the range of $56,552 to $73,777, sellers pushed the price down to near $53,500 on July 5. The lower levels attracted buyers, resulting in a net inflow of $143.1 million into the US-based Spot Bitcoin ETF. Crypto experts suggest that the dip is a buying opportunity. Bitcoin's drop has led to increased selling in several altcoins, but some are holding strong support levels and are poised to lead a recovery if Bitcoin moves towards $60,000. Despite the bearish momentum, the positive divergence on the RSI suggests a slowdown in the bearish trend. A breakout above the 20-day EMA could be a sign of a sustained recovery.”
Disclaimer: Cryptocurrency products and NFTs are unregulated and may be very risky. There may be no regulatory remedy for losses from such transactions. Cryptocurrencies are not legal tender and are subject to market risks. Readers are advised to seek professional advice and to carefully read the offer documents and any relevant material literature before making any type of investment. Cryptocurrency market forecasts are speculative and investments are made at the reader's sole expense and risk.
