In this article you can acknowledge cryptocurrency market analysis for Monday, July 4. Bitcoin got off to a rocky start in 2022. However, some experts still think it could hit $100K at some point. At the end of June 2022, the price of BTC fell below $20,000, and it has not recovered from that point since, except for a temporary spike on July 1, 2022.
As of today, July 4, 2022, Bitcoin is struggling to hold onto the $20,000 level. However, it does not appear to be succeeding. If it does break below its recent low of $17,500, most experts believe there will not be any meaningful support until it reaches $14,500.
Reason for the Recent Price Crash
The recent price crash was caused by de-risking from Wall Street. Many investors have a gloomy outlook for the future of the economy amidst a rise in inflation, a shaky stock market, and rising interest rates. In recent months, the performance of the stock market has closely tracked that of the crypto markets. A major reason for this is that mainstream investors have been getting into crypto, making it even more intertwined with the global economic performance.
Bitcoin Outlook
One of the metrics to closely watch right now is the Whale Ration metric, which predicts the selling behavior of big players in the BTC markets. It is arrived at by dividing the top 10 BTC inflows to exchanges by all daily inflows. Historically, the higher it is the higher the price volatility.
Since BTC failed to break the $48K level and started dropping to its current level of the 2017 ATH, the Whale Ration has spiked several times, which has been a catalyst for the current bear market. Based on current trends, the high ratio shows that whales are depositing huge amounts of BTC on exchanges, which is increasing the selling pressure.
Nonetheless, as big players start to cash out of BTC and realize huge losses, Bitcoin is likely going to find a bottom for its next bull run.
Performance of Other Notable Coins
One of the most notable coins on July 4 was Ripple (XRP), which added 2% amidst the general market bear run. In the past 24 hours, overall crypto market volumes fell by over 2.7%.
The 24-hour volume of the DeFi market was $4.1 billion, representing slightly over 10% of the total crypto market. Stablecoin volumes were $36 billion, representing slightly over 91% of the total 24-hours volume of the crypto market.
Other Interesting News
Hedge funds attempted to short Tether (USDT), amidst the fall of TerraUSD, where confidence in stablecoin is at an all-time low. Tether (USDT), which is the third-largest coin by market cap, was able to resist the attack, which would have had dire consequences on many digital asset holders.
In other news, Meta has announced that it is shutting down Novi, its crypto digital wallet, on September 1, 2022. The shutdown of the project came in its pilot stage before it went to full launch. After the September 1 shutdown, users will not be able to check their accounts via Novi or its WhatsApp integration.
