After a wild ride through the markets in June, some analysts predict that the selling pressure on cryptocurrency exchanges has subsided, setting the stage for a “relief rally” in the markets.
After so many small traders gave up, there is a lot to be hopeful about July’s prospects. A relief bounce might be about to start as a result of the extra unfavorable market sentiment and trading losses.
Bitcoin dropped about 7% in June, bottoming out at $59,500, as per Cointelegraph Markets Pro. As the value of the cryptocurrency market dropped by around $400 billion between last month’s low and its $2.5 trillion top, many other cryptocurrencies followed, according to TradingView.
Similar cause for optimism was provided by Analyst and CryptoQuant verified author Minkyu Woo, who noted in a post dated July 1 that sellers “are finally exhausted.”
The current spike in June suggests that “large-scale selling pressure on exchanges is diminishing,” according to his analysis of the average magnitude of the top Tether outflows from exchanges since January of last year, which witnessed a “decrease in outflows after a strong surge.”
It appears from this decline in outflows that investors are more likely to hang onto their assets than take money out of the market. This may suggest that investor attitude has changed in a more optimistic manner in the wake of the Bitcoin halving, Woo continued.
The price of Bitcoin is currently $62,950, down 0.4% in the last 24 hours.
The $9 billion worth of Bitcoin that the long-bankrupt exchange Mt. Gox unlocked this month presents some challenges for the cryptocurrency market and Bitcoin, and it may cause selling pressure as creditors look to cash out their crypto that has been locked up for ten years.
