Over the weekend, leading cryptocurrencies experienced significant selling pressure as investor sentiment turned skeptical about the market’s near-term outlook. Bitcoin, Ethereum, and Dogecoin, among others, saw notable declines, reflecting the cautious mood that has gripped the market.
Bitcoin, the world’s largest digital asset by market capitalization, fell below the $63,000 mark during Sunday trading hours, extending its monthly losses to nearly 7%. This decline marked a continuation of the downward trend that has plagued Bitcoin since it peaked at $71,000 earlier in the month. The cryptocurrency’s price plunged by 1.90%, settling at $63,097.30 by the end of the weekend.
Ethereum, the second-largest cryptocurrency, also faced a substantial drop. Its price fell by 2.33%, bringing it down to $3,420.82. Traders are anxiously awaiting the listing of spot ETFs on stock exchanges, a development that has yet to materialize and continues to weigh on market sentiment.
Dogecoin, another major player in the crypto market, decreased by 1.11%, with its price falling to $0.1226. The broader market’s cautious stance was evident as the speculative market exercised restraint. Open Interest in Bitcoin futures declined by 0.76% over the last 24 hours, with most of the new positions being long on Bitcoin. Despite this, the overall market bias was towards price declines, as indicated by the Long/Short Ratio.
Adding to the market’s cautious outlook, the Cryptocurrency Fear & Greed Index shifted to “Neutral” ahead of the last trading week of June. This marked a sharp reversal from the “Extreme Greed” sentiment observed during the first week of the month, highlighting the market’s volatile nature.
Despite the general downturn, a few cryptocurrencies managed to post gains. Toncoin saw a rise of 2.76%, reaching a price of $7.55. Fantom increased by 1.10%, with its price settling at $0.5851, and Fetch.ai edged up by 0.33%, bringing its price to $5.76. However, these gains were not enough to offset the broader market’s decline, with the global cryptocurrency market cap shrinking by 2.02% in the last 24 hours, standing at $2.3 trillion.
In the traditional stock market, futures traded flat during overnight hours. The Dow Jones Industrial Average Futures fell slightly by 0.05%, while futures tied to the S&P 500 saw a modest gain of 0.05%. Nasdaq 100 Futures edged up by 0.16%. These mixed results came after major stock indices had spiked to record highs the previous week, driven by a rally in AI giant NVIDIA Corp. (NASDAQ:NVDA). However, significant sell-offs towards the end of the week curtailed this upward momentum. NVIDIA’s shares alone dropped by 3.5%, cutting short the broader market’s ascendancy.
Looking ahead, investors are expected to focus on the upcoming release of personal expenditure data, which serves as the Federal Reserve’s preferred measure of inflation. This data, due to be published on Friday, will be closely watched as it could influence the Federal Reserve’s decisions at the next FOMC meeting scheduled for July 31. The CME FedWatch Tool currently indicates a 90% probability that interest rates will remain unchanged at this meeting.
Among analysts, opinions on the future direction of Bitcoin remain divided. MartyParty, a popular cryptocurrency trader, noted that Bitcoin’s Relative Strength Index (RSI) was nearing oversold territory, a condition that could favor a bounce. He predicted that Bitcoin could rise to $65,000 next and then move in a rangebound pattern until the U.S. elections.
In contrast, another well-known analyst using the pseudonym HORSE issued a more bearish forecast. He expressed confidence that Bitcoin would trade below $60,000 again. HORSE argued that the prolonged consolidation and market weakness, coupled with dwindling demand and a lack of strong upward momentum, typically resolve in further declines before any significant recovery.
Overall, the weekend’s performance in the cryptocurrency market highlights ongoing investor uncertainty and mixed sentiment regarding future price movements. While some analysts remain optimistic about a potential rebound, others caution that further declines could be on the horizon. As market dynamics continue to evolve, investor focus will likely remain on key economic indicators and regulatory developments that could impact the cryptocurrency landscape.