Home > Dynamic > Bitcoin falls to two...

Bitcoin falls to two-month low as Fed signals it's not ready to cut rates

2024-07-05

724

Bitcoin fell to around $57,000 on Thursday, a two-month low, as the Federal Reserve's June meeting minutes showed it was not ready to cut interest rates. Meanwhile, Ethereum fell 5% to $3,120.

In March, Bitcoin soared to an all-time high of more than $73,700 after the U.S. Securities and Exchange Commission (SEC) approved the first U.S. spot Bitcoin ETF. Spot Bitcoin ETFs allow investors to buy products that track Bitcoin prices without owning Bitcoin. Cryptocurrency supporters say this helps legitimize the asset class and makes it easier for large institutional investors to participate.

However, since then, Bitcoin prices have hovered between about $59,000 and $72,000. It is worth mentioning that Mt. Gox, the former world's largest cryptocurrency exchange, which filed for bankruptcy in 2014 after suffering losses from a hacker attack, is about to begin repaying users for the huge amount of cryptocurrency they lost. Analysts believe that users who receive compensation may set off a wave of cryptocurrency selling, and Bitcoin may face greater downward pressure.

John Glover, chief investment officer of Ledn, a cryptocurrency lending company and former managing director of Barclays, believes that Mt. Gox is about to start repaying users for the huge amount of cryptocurrency they lost. Gox users could translate into a massive sell-off of Bitcoin as investors look to lock in gains. He said: "Many people will obviously cash out, feeling that their cryptocurrency assets trapped by the bankruptcy of Mt. Gox are the best investment they have ever made. Some will obviously choose to run with their money."

However, analysts at crypto data and research company CCData pointed out in a research report on Tuesday that Bitcoin has not yet reached the top of the current appreciation cycle and is likely to hit a new record high again. The report said that historical market cycles show that Bitcoin's "halving" event always precedes a period of price inflation, which can last for 12 to 18 months "until the top of the cycle is reached", and the most recent "halving" occurred on April 19 this year, so Bitcoin has not yet reached the top of the cycle.

The report also said: "In addition, we have observed that trading activity on centralized exchanges has fallen for nearly two months after the "halving" events in previous cycles, which seems to reflect this cycle. This suggests that the current cycle may be further extended to 2025."

In addition, Tom Lee, head of research at Fundstrat, said that although Mt. Gox is about to start paying back users for the huge amounts of cryptocurrency they lost, but he insists that Bitcoin will reach $150,000. He said that knowing that one of the biggest threats to cryptocurrencies will be gone in July is one of the reasons to be bullish on cryptocurrencies, and he expects cryptocurrencies to see a fairly strong rebound in the second half of the year.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

CM Trade

As a world leading financial trading platform, CMtrade Provides comprehensive one-stop trading services and opportunities for traders.

[Products]

The platform provides over 32 kinds of popular financial products such as forex, precious metals, crude oil, indices, cryptocurrencies and more.

[System]

2 top trading systems CM Trade MT4 / CM Trade APP, powerful and easy to operate

[Service]

Comprehensive market news, professional market analysis, 7*24 hours online customer service

[Advantage]

Low cost, high leverage, flexible one-stop all day two-way trading.

[Authority]

Licensed and strictly regulated by authorities. Traders deposits are independently kept by the bank. Fast deposit and withdrawal. Fair, efficient and transparent trading environment.

Free Access
Daily Trading Strategy Download Now

CM Trade Mobile Application

Economics Calendar

Bitcoin falls to two-month low as Fed signals it's not ready to cut rates

Access to global trading markets anytime and anywhere