Today, Bitcoin took another dive, this time to its lowest level since June 21. A check on Bitfinex reveals a BTC price slump to $28,641. Coinbase, America\u2019s largest crypto exchange, reported an even more drastic drop to $28,478. Although the price bounced back slightly to hover just below $29,000 (-1.4% in the last 24 hours), the downward trend sparks questions.<\/p>\n
James V. Straten, a renowned on-chain analyst, recently tweeted<\/a>: \u201cBitcoin drops below $29,000 as open interest spikes while funding rates go lower. As a result of the biggest long liquidation since 24th July.\u201d As the analyst states, Bitcoin\u2019s price trend can be majorly attributed to long liquidations. The liquidation data from Coinglass indicates that $23.6 million in BTC longs were liquidated, a relatively small amount but significant considering the market\u2019s state.<\/p>\n In an illiquid market, smaller orders can significantly sway the market. According to data from Kaiko, BTC and ETH have seen a decline in 90-day realized volatility this year, with volatility levels currently hovering around two-year lows.<\/p>\n Moreover, Kaiko\u2019s data also reveals that Bitcoin\u2019s correlation with the S&P 500 continued to decline in July, falling to just 3%. The last time it was this low was back in August 2021. This suggests that the traditional financial market\u2019s influence on Bitcoin\u2019s price is waning, an impulse much needed at the moment.<\/p>\n Analyst @52Skew noted<\/a> that BTC Spot CVDs & Delta Retrospective were hinting at the downtrend. \u201cThere were clear signs of spot supply & sellers, especially on Coinbase. Aggregate Spot CVD indicated heavy supply prior to sell off: Price grinding higher into limit supply & market spot selling.\u201d<\/p>\n Meanwhile, renowned trader @exitpumpBTC pointed<\/a> out on Twitter: \u201cSomeone sitting with 400 BTC buy wall at $28,900 on Binance spot orderbook. Fully closed my short.\u201d This buy wall might provide some support for Bitcoin\u2019s price at the current level.<\/p>\n The Bitcoin Market Sentiment, as represented by the Fear & Greed Index, is presently at 50 \u2013 neutral. However, the sentiment on the Bitcoin and crypto market is lukewarm, despite BTC being up 76% year-to-date. The fading momentum seems to be due to the Bitcoin and crypto market\u2019s current \u201csummer slumber.\u201d The bullish news seems already priced in, and volumes on exchanges are dwindling.<\/p>\n Interestingly, despite some major bullish developments for the broader crypto market, including Blackrock\u2019s filing<\/a> for a spot ETF and the victory<\/a> for XRP and Ripple, the retail and institutional interest remains low. This is reflected in the low liquidity and volatility in the market.<\/p>\n Remarkably, the crypto space has been rocked by an array of events recently. From the rise of liquidity absorbing meme coins to scam tokens, the market has seemingly descended into chaos. In the midst of all these, impending events such as the Curve (CRV) hack<\/a> as well as fears of a potential DOJ action against Binance and Tether, continue to add anxiety to the market. In this uncertain state, there are no new investors to catapult the market upward.<\/p>\n At press time, BTC traded at $28,990.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n Today, Bitcoin took another dive, this time to its lowest level since June 21. A check on Bitfinex reveals a BTC price slump to $28,641. Coinbase, America\u2019s largest crypto exchange, reported an even more drastic drop to $28,478. Although the price bounced back slightly to hover just below $29,000 (-1.4% in the last 24 hours), the downward trend sparks questions.<\/p>\n James V. Straten, a renowned on-chain analyst, recently tweeted<\/a>: \u201cBitcoin drops below $29,000 as open interest spikes while funding rates go lower. As a result of the biggest long liquidation since 24th July.\u201d As the analyst states, Bitcoin\u2019s price trend can be majorly attributed to long liquidations. The liquidation data from Coinglass indicates that $23.6 million in BTC longs were liquidated, a relatively small amount but significant considering the market\u2019s state.<\/p>\n In an illiquid market, smaller orders can significantly sway the market. According to data from Kaiko, BTC and ETH have seen a decline in 90-day realized volatility this year, with volatility levels currently hovering around two-year lows.<\/p>\n Moreover, Kaiko\u2019s data also reveals that Bitcoin\u2019s correlation with the S&P 500 continued to decline in July, falling to just 3%. The last time it was this low was back in August 2021. This suggests that the traditional financial market\u2019s influence on Bitcoin\u2019s price is waning, an impulse much needed at the moment.<\/p>\n Analyst @52Skew noted<\/a> that BTC Spot CVDs & Delta Retrospective were hinting at the downtrend. \u201cThere were clear signs of spot supply & sellers, especially on Coinbase. Aggregate Spot CVD indicated heavy supply prior to sell off: Price grinding higher into limit supply & market spot selling.\u201d<\/p>\n Meanwhile, renowned trader @exitpumpBTC pointed<\/a> out on Twitter: \u201cSomeone sitting with 400 BTC buy wall at $28,900 on Binance spot orderbook. Fully closed my short.\u201d This buy wall might provide some support for Bitcoin\u2019s price at the current level.<\/p>\n The Bitcoin Market Sentiment, as represented by the Fear & Greed Index, is presently at 50 \u2013 neutral. However, the sentiment on the Bitcoin and crypto market is lukewarm, despite BTC being up 76% year-to-date. The fading momentum seems to be due to the Bitcoin and crypto market\u2019s current \u201csummer slumber.\u201d The bullish news seems already priced in, and volumes on exchanges are dwindling.<\/p>\n Interestingly, despite some major bullish developments for the broader crypto market, including Blackrock\u2019s filing<\/a> for a spot ETF and the victory<\/a> for XRP and Ripple, the retail and institutional interest remains low. This is reflected in the low liquidity and volatility in the market.<\/p>\n Remarkably, the crypto space has been rocked by an array of events recently. From the rise of liquidity absorbing meme coins to scam tokens, the market has seemingly descended into chaos. In the midst of all these, impending events such as the Curve (CRV) hack<\/a> as well as fears of a potential DOJ action against Binance and Tether, continue to add anxiety to the market. In this uncertain state, there are no new investors to catapult the market upward.<\/p>\n At press time, BTC traded at $28,990.<\/p>\n <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-27606","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/27606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=27606"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/27606\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=27606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=27606"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=27606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Bitcoin Market Sentiment Weighs On Price<\/h2>\n
Why Is The Bitcoin Price On The Decline?<\/h2>\n
Bitcoin Market Sentiment Weighs On Price<\/h2>\n