Bitcoin Recovers, But Not Yet Safe
Bitcoin recovered slightly on Monday (July 6th) after experiencing pressure in recent weeks. The price of Bitcoin is now around US$63,402, with a daily range of US$61,350–US$63,874. This increase indicates a resurgence of buying interest after Bitcoin previously fell below US$58,000.
Crypto market sentiment improved after weaker-than-expected US jobs data for June. This data led investors to reduce expectations of an imminent Fed interest rate hike. For riskier assets like crypto, expectations of lower interest rates are typically a positive sentiment because market liquidity tends to be looser.
In addition to interest rate factors, the market also received a boost from the return of funds into US spot Bitcoin ETFs. The crypto ETFs recorded an inflow of around US$224 million, ending the outflow trend of the previous few days. This signaled that institutional demand was stabilizing.
However, the pressure has not completely subsided. Citigroup previously cut its 12-month forecast for Bitcoin from US$112,000 to US$82,000, citing weakening investor interest, negative ETF flows, and slow development of crypto regulations in the US. This has kept the market cautious even as Bitcoin begins to rebound.
For other cryptocurrencies, Ethereum is hovering around US$1,624.95, BNB at US$583.52, Solana at US$77.97, and XRP at US$1,059. These movements indicate that the crypto market has not yet rallied sharply, but is beginning to stabilize after significant pressure in June.
Looking ahead, investors will focus on the minutes of the Fed's June meeting. If the minutes signal that the central bank is being more cautious about raising interest rates, Bitcoin has a chance of holding the US$63,000–US$64,000 area. However, if the Fed sounds more hawkish, selling pressure could re-emerge and send Bitcoin testing the US$61,000–US$60,000 area. (arl)
Source: Newsmaker.id
