Overview
The cryptocurrency market is witnessing a pullback in bitcoin’s price, which has dropped 5% from its previous record highs. This downturn has also impacted the broader market, although certain assets like BONK and PUMP are seeing gains.
Key Details
- According to blockchain analytics firm Lookonchain, significant BTC wallets have been transferring funds to centralized exchanges, typically indicative of imminent sales. An OG wallet containing 80K BTC recently moved half of its holdings to Galaxy Digital, followed by a deposit of 6,000 BTC to both Binance and Bybit.
“A spike in Coin Days Destroyed metric and a rise in large exchange inflows suggest potential profit-taking. However, despite the significant sell pressure, bitcoin remains resilient, supported by strong institutional backing and market demand,” said Tagus Capital in their market update.
Fortunately, during this series of transfers, the inflows into U.S.-listed spot bitcoin ETFs have diminished to $297 million, a 70% decline from the prior Friday, while inflows into ETH ETFs saw a rise, growing from $204 million to $259 million.
Valentin Fournier has noted that the slowdown in bitcoin inflows indicates a potential weakening in buyer confidence at these high price levels. He suggests that the upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) releases this week could influence the next price movements significantly. He mentioned:
“Elevated inflation expectations due to tariffs could unsettle investor confidence, while positive surprises in the data might ease the existing sell-off.”
Future Outlook
Other market analysts are watching developments in legislative proposals such as the GENIUS and CLARITY Acts aiming to broaden institutional involvement in the crypto sector.
In the ecosystem of traditional finance, Coinbase shares reached an all-time high of $398.50, increasing its market cap beyond $100 billion.
Lastly, in traditional markets, the Japanese 30-year government bond yield touched 3.20%, matching the multi-decade high seen in May. With ongoing volatility in the bond market as indicated by the MOVE index, investors are encouraged to remain vigilant.
Upcoming Events
- July 15: Launch of Alchemist staking update.
- July 15: Lynq will debut its digital asset settlement network.
- July 15: TAC is set to launch its mainnet, integrating ETH DeFi applications.
- July 15: U.S. Senate hearing on digital commodities will take place.
Conclusion
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