CoinWorld Report:
Bitcoin Selling Pressure
Grayscale Research has indicated that the June decline in Bitcoin prices resulted from overlapping selling pressures. These pressures have not only affected Bitcoin but have also spread to other cryptocurrencies. The main sources of selling include:
Mt. Gox Bankruptcy Estate:
Mt. Gox’s trustee announced the commencement of Bitcoin and Bitcoin Cash repayments in early July, raising concerns in the market about future sell-offs.
German Government Liquidation:
The German government initiated the liquidation of Bitcoin confiscated in 2013, sending nearly 4,000 Bitcoins worth about $220 million to exchanges in June.
US Government Sale:
On June 26, the US government transferred 3,940 Bitcoins ($240 million) to Coinbase Prime, further intensifying market pressure.
Bitcoin Miner Sell-off:
Miners sold approximately 1,560 Bitcoins worth around $100 million over the past 30 days.
US Spot Bitcoin ETP Outflows:
In the latter half of June, these products saw a net outflow of $581 million.
The greatest market pressure continues to stem from institutional VC disinvestment in altcoins, which remains persistent.
Altcoins have suffered significant drops: JQCZ0192 is struggling, with Bitcoin down 5%, Ethereum down 7%, SOL down 9%, DOGE down 11%, and others like PEOPLE plummeting 33%, and ORDI.SATS setting new lows.
1. Some altcoins are approaching their lows of the past two years, making a weak new low inevitable. AEVO.ZK.YGG.BAKE.X.BIGTIME.W.SATS have dropped by around 20%, while BOME.METIS.ORDI.BSV.APE.NOT.AR.PEPE have seen declines of about 15%. Despite severe drops across altcoins, panic selling has yet to emerge.
2. Today, the first Friday of July, non-farm payroll data indicates the market has been on a two-day continuous decline. There is a high probability of a bottoming and rebound today. In this mid-term adjustment within a bull market, Bitcoin’s decline is relatively modest compared to altcoins, some of which have dropped as much as 80% or even more than 90%. Previously surging tokens like Mingwen, AI, new coins, runes, and weak garbage coins have been particularly hard hit. Overall, apart from major coins like Bitcoin, Ethereum, BNB, and SOL, others are in a sorry state.
Over the past 24 hours, the entire cryptocurrency market has seen liquidations exceeding $510 million, according to Coinglass data, more than double the amount from yesterday, affecting over 188,000 individuals.
Strategies and suggestions for coping with significant market drops that may be helpful:
1. Diversify Investments: Avoid concentrating all funds in one asset or market. Diversifying across different asset classes such as stocks, bonds, gold, real estate, etc., can mitigate the impact of a severe market downturn on the overall investment portfolio.
2. Maintain Adequate Cash Reserves: Hold a certain proportion of cash to capitalize on buying opportunities during significant market declines or to address potential funding needs.
3. Implement Stop-Loss Strategies: Set a predetermined level of acceptable loss; when investment losses reach this level, sell decisively to limit further losses.
4. Strengthen Risk Assessment: Regularly assess the risk profile of your portfolio and adjust asset allocation based on market changes.
5. Monitor Macroeconomic Indicators: Keep a close watch on macroeconomic indicators such as interest rates, inflation, economic growth rates, and policy changes to anticipate market trends in advance.
It’s important to note that predicting financial market trends accurately is challenging, and no strategy can completely eliminate risks. However, with prudent planning and measures, losses can be mitigated to some extent, enhancing the ability to respond to market changes.
Lastly, there’s much more beyond what’s covered in this article, such as specific opportunities and decisions, which often require more detailed exploration.
For further insights into the cryptocurrency realm and cutting-edge information firsthand, feel free to consult us. We offer the most professional cryptocurrency community with daily market analysis and recommendations of promising assets.