The cryptocurrency markets have continued to bleed, with social media now showing historic levels of Fear, Uncertainty, and Doubt (FUD).
It’s rare for an hour to pass without more mentions of “sell” than “buy” across crypto forums. In the past 24 hours alone, there have been several instances of this, including the highest ratio of negative to positive comments seen so far in 2024.
For bold traders, this may be a window to adopt a contrarian approach and buy amid the crowd’s anger and frustration.
📉 Markets have continued to bleed, and social media is now showing historic levels of FUD. It is rare for an hour to go by where there are more mentions of "sell" than there are "buy" across crypto forums. But we've seen a few of these instances in just the past 24 hours,… pic.twitter.com/DdXAYP6n81
— Santiment (@santimentfeed) July 5, 2024
On Reddit, several users reported that their Bitbank accounts received Bitcoin (BTC) and Bitcoin Cash (BCH), with the amounts matching those listed in the Mt. Gox table. Today, Mt. Gox transferred 1,544.67 BTC (approximately $84.87 million) to the hot wallet of the Japanese exchange Bitbank.
According to analyst Ali Martinez, Bitcoin whales have sold over 30,000 BTC in the past month, worth approximately $1.8 billion. Currently, Bitcoin lacks significant support, with the main demand wall around $47,000.
For the bull run to resume, BTC must close and hold above $61,000.
#Bitcoin whales have sold over 30,000 $BTC in the past month, worth approximately $1.8 billion! pic.twitter.com/Rpo8WiexkH
— Ali (@ali_charts) July 5, 2024
#Bitcoin currently lacks significant support. The main key demand wall is around $47,000, and for the bull run to resume, $BTC must close and hold above $61,000. pic.twitter.com/9cD2otd4ZK
— Ali (@ali_charts) July 5, 2024
Nine (9) ETFs Decreased Their Holdings By 69 BTC As The Sentiment Grows Cold
On July 4, nine exchange-traded funds (ETFs) decreased their holdings by 609 BTC, equivalent to a $35 million reduction. Grayscale also decreased its holdings by 535 BTC, a $30.7 million reduction, and now holds 274,724 BTC valued at approximately $15.76 billion.
July 4 Update:
9 ETFs decreased 609 $BTC(-$35M).#Grayscale decreased 535 $BTC(-$30.7M) and currently holds 274,724 $BTC($15.76B).https://t.co/RNb9HiUF7I pic.twitter.com/VRq4PXP2c3
— Lookonchain (@lookonchain) July 4, 2024
The current market sentiment and substantial whale sell-offs indicate a challenging environment for Bitcoin and other cryptocurrencies. However, for those willing to take a contrarian stance, this period of heightened FUD and selling pressure could present a unique buying opportunity. As always, investors should exercise caution and conduct thorough research before making any investment decisions.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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