Crypto Market Analysts Discuss Bitcoin and Altcoin Declines, Future Expectations
Bitcoin (BTC) and major altcoins saw a significant downturn recently, with BTC dropping below $61,000 amid concerns over distribution and ETF outflows. The decline coincided with U.S.-listed Bitcoin ETFs experiencing net outflows of $13 million, ending a streak of inflows that lasted five days.
Bitcoin started the day at $62,000 but quickly fell to $60,900 after Tokyo markets opened, marking a 3% loss for other major cryptocurrencies like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE). Meanwhile, XRP remained relatively stable, and Cardano’s ADA retraced some gains from a recent rally tied to regulatory compliance developments in Europe.
Market experts point to various factors contributing to the bearish sentiment, including the impending distribution of assets from the defunct Mt. Gox exchange. Approximately 140,000 BTC are set for release in July 2024, adding potential selling pressure due to uncertainty about the distribution schedule after years of delays.
Despite short-term bearish outlooks, some investors maintain long-term optimism. Tom Lee from Fundstrat Global Advisors reiterated his bullish forecast that BTC could surge to $150,000 post-distribution, citing factors such as demand from spot ETFs, the upcoming bitcoin reward halving, and anticipated Federal Reserve interest rate adjustments.
Looking ahead, analysts are divided on whether the current decline marks a trend reversal or a temporary setback, with ongoing developments in ETF flows and regulatory compliance likely to influence market dynamics in the coming weeks.
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