- On Tuesday, Mt. Gox transferred 44,527 BTC, equivalent to $2.84 billion, to an internal wallet.
- Micheal Dell, CEO of Dell Technologies, expressed his fascination with Bitcoin on Twitter.
- U.S. spot Bitcoin ETFs saw inflows of $300.90 million on Monday.
- On-chain data shows that $71.02 million short positions were liquidated, and open interest is rising.
Bitcoin (BTC) sees a 3% price decline on Tuesday, trading around the $63,000 level at the time of writing. On-chain data shows a liquidation of $71.02 million in short positions and a rise in open interest. Additionally, US spot Bitcoin ETFs recorded $300.90 million in inflows on Monday. The transfer of 44,527 BTC, valued at $2.84 billion, from Mt. Gox to an internal wallet on Tuesday possibly contributed to market uncertainty, potentially influencing Bitcoin's price drop today.
Daily digest market movers: Bitcoin price sheds 3% as Mt. Gox transfers weigh
- Lookonchain data shows that Mt. Gox transferred 44,527 BTC, equivalent to $2.84 billion, to an internal wallet on Tuesday, possibly in preparation for creditor repayments. With Mt. Gox currently holding 138,985 BTC valued at $8.87 billion, the defunct exchange, famously exploited in 2014, announced plans to reimburse Bitcoin and Bitcoin Cash to users in July. Previously, users suffered nearly $9 billion in cryptocurrency losses. This movement of funds may have triggered FUD (Fear, Uncertainty, Doubt), contributing to Bitcoin's 3% price decline on Tuesday.
Mt. Gox moved 44,527 $BTC(2.84B) to an internal wallet 5 minutes ago, which may be preparing for repayment.#MtGox currently holds 138,985 $BTC($8.87B).https://t.co/f2q66eQNuk pic.twitter.com/JlqkZdzkPC
— Lookonchain (@lookonchain) July 16, 2024
- Michael Dell, the founder and CEO of Dell Technologies, has expressed his fascination with Bitcoin on social media. Dell, with a net worth of approximately $108 billion, shared a recent video of Blackrock CEO Larry Fink discussing Bitcoin on CNBC. This move is significant as Dell's endorsement could influence the tech and finance industries' perception of Bitcoin.
- Given Dell's influence and the scale of Dell Technologies, his interest in Bitcoin could impact its acceptance and further adoption in the US tech industry. In the video, Fink manages $10.5 trillion in assets and explains his shift from skepticism to endorsing Bitcoin as a legitimate "digital gold" and a necessary alternative for economic stability.
Fascinating #Bitcoin pic.twitter.com/LYzl423eBm
— Michael Dell (@MichaelDell) July 15, 2024
- On Monday, US spot Bitcoin ETFs saw inflows of $300.90 million. This indicates increasing investor confidence and may predict a short-term rise in Bitcoin's price. Monitoring the net inflow data of these ETFs is important for grasping market dynamics and investor sentiment. Presently, the combined reserves of Bitcoin held by the 11 US spot Bitcoin ETFs amount to $51.22 billion.
Bitcoin Spot ETF Net Inflow (USD) chart
- According to the Coinglass Bitcoin Total Liquidations chart, $71.02 million in short positions were liquidated on Monday, compared to $9.94 million in long positions. This discrepancy suggests that when more shorts are liquidated than longs, upward pressure on the asset's price often results, driven by short covering, heightened volatility, and potential shifts in market sentiment towards a more bullish outlook.
Bitcoin Liquidation chart
- Additionally, Biticoin's Open Interest (OI) chart shows that OI surged from $30.63 billion on Monday to $32.44 billion on Tuesday, reaching its highest level since July 4. This uptick indicates an influx of new capital and increased buying activity within the market.
Bitcoin Open Interest chart
Technical analysis: BTC faces resistance around $65,000 level
Bitcoin price broke above a descending trendline on Sunday and rallied 6.5% the next day.When writing, BTC has faced resistance around the daily resistance level of $64,913 and trades down 3% around $62,641.
Sideline buyers looking for opportunities can do so between the $59,200 and $57,800 levels, the broken trendline resistance turned support.
If the trendline holds as throwback support, BTC could rally 10% from that level, targeting its daily resistance of $64,913.
On the daily chart, the Relative Strength Index (RSI) is currently above the neutral level of 50, and the Awesome Oscillator (AO) is also approaching its neutral threshold. Both indicators must maintain their positions above the medium line for the bullish momentum to be sustained. This scenario would contribute additional momentum to the ongoing recovery rally.
Furthermore, surpassing the $64,913 level could allow an additional 3.5% rise to retest the weekly resistance at the $67,209 level.
BTC/USDT daily chart
However, If Bitcoin's daily candlestick closes below the $56,405 level and forms a lower low in the daily timeframe, it may signal persistent bearish sentiment. This scenario could trigger a 7.5% decline in Bitcoin's price, targeting its daily support at $52,266.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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