Bitcoin’s price took a downward turn as the Asian markets opened, following a series of warnings in the past few days. With US markets closed for the holiday, the impact of ETF sales will be seen tomorrow. Experts at 10x Research have shared their predictions for the future of cryptocurrencies amidst this recent decline, which align with their previous assessments.
The decline in Bitcoin’s value led to painful levels in altcoin sales, with BTC dropping to $56,952. The reasons for losing the psychological support at $60,000 have been evaluated throughout the day, raising concerns about whether sales will continue to plummet to $50,000 or even lower. Markus Thielen, an analyst at 10x Research, highlighted the risks of a downward series of drops, with daily slides above 5% resulting in a 57% increase in trading volume, indicating panic selling among investors.
Thielen further emphasized that only uninformed investors would be willing to buy after the $60,000 support was broken. The latest analysis report suggested prioritizing risk management and pointed out a potential recovery trend for BTC after deeper losses, as MTGOX returns and government BTC sales, in addition to miner sales, create a significant supply surplus beyond the fear, uncertainty, and doubt. The long-term investors’ spent output ratio (SOPR) exceeded 10 on July 3, indicating that BTCs sold are being disposed of at least 10 times their initial purchase price, impacting 5-7 year holders who might have been caught up in the recent selling frenzy.
Furthermore, experts tracking massive on-chain BTC movements suggest that MTGOX returns may have genuinely started as of July. While there are improvements on the macroeconomic front for investors, the recent events are described as unfortunate. It is important to note that the information in this article does not constitute investment advice, and investors should be aware of the high volatility and risk associated with cryptocurrencies, and conduct their own research.