Crypto ‘relief rally’ may be just beginning, sellers are exhausted
Crypto markets could be set for a “rally to relief” after the market rollercoaster in June, with some analysts saying selling pressure on exchanges has eased.
“Looking at the outlook for July, there is a big reason to be bullish after a lot of small traders' capital,” crypto intelligence platform Santiment said in a July 2nd post on Xx.
He added negative market sentiment and trader losses mean the “rescue rally may yet begin”.
According to Cointelegraph Markets Pro, Bitcoin (BTC) fell almost 7% in June, down to $59,500 during the month.
The crypto market capitalization shaved around $400 billion between the high and low of $2.5 trillion in May, followed by many other cryptocurrencies, according to TradingView.
Analyst and CryptoQuant certified author Minkyu Woo had similar reasons for optimism, saying in a July 1 post that sellers are “finally exhausted.”
Tether (USDT) averages highest since January 2023 outflows from exchanges “decline in outflows after strong surge” June's sharp increase “suggests that large-scale selling pressure on exchanges is waning.
“This decline in outflows shows that investors are more interested in holding onto their assets than taking money out of the market.”
“This may indicate that investor sentiment is more positive following the Bitcoin halving event,” Woo added.
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BTC is currently trading around $62,950, down 0.4% in 24 hours.
Some headwinds for Bitcoin and the crypto market in July saw $9 billion worth of BTC on long-lost exchange Mt. Gox has been unlocked, which could lead to selling pressure as lenders look to withdraw their crypto that has been locked up for nearly a decade.
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