Cryptocurrency markets continue to trade sideways this Saturday as the global crypto market capitalization remains above $868 billion while Bitcoin trades above $19k and Ethereum manages to stay above $1k. Major stocks rallied during the first day of the year’s second half, ahead of a long July 4th weekend, spelling some good news for global markets.
Major Stocks Rally to Start The Third Quarter
The third quarter of the year is off to a good start as stocks rallied Friday, the first day of Q3. NASDAQ rose by 2%, S&P 500 increased by 39 points (1%), and Dow Jones saw gains of 321 points (1.05%).
We’ve even seen tech stocks like Netflix gain 2.91% on Friday, AAPL is up 1.62%, and AMZN is up 3.15%.
Surprisingly, cryptocurrency markets remained relatively flat on Friday, with Bitcoin and Ethereum prices barely managing to hold support on July 1st.
Bitcoin’s Losses in June Highest in 11 Years
June has been one of the worst months for Bitcoin’s price in 11 years. Sliding over 39% last month, the bear market for BTC continued as inflation continued to rise, and the future of the global economy remains uncertain.
According to a report from Coindesk, traders claim that the overall market sentiment suggests that Bitcoin needs to “wash out” and take out all the short positions to reset its market. Some traders are even predicting BTC to hit the $12-13k range.
Besides the uncertain economy, rising inflation, and increasing interest rates, there are interpersonal conflicts within the cryptocurrency community, making it hard for traders to go long on crypto.
Specifically, the collapse of Terra Luna and its stablecoin caused significant damage to the global crypto market. In addition, the drama with Celsius and the halting of withdrawals created further panic in the market as additional investors were left in the wind.
If that wasn’t enough, KuCoin, one of the leading exchanges, has been trending on Twitter due to rumors that the exchange will soon halt withdrawals. There’s no source or basis for these rumors, and currently, withdrawals are working without issue on the platform.
When an exchange halts withdrawals, there are never warning signs. It’s never a good idea to keep a significant portion of cryptocurrency on exchanges, but spreading FUD (Fear, Uncertainty, and Doubt) is extremely unhelpful during these trying times.
Overall, Bitcoin’s price remains strong above the $19k level. Unless a significant correction hits the stock market on Tuesday, Bitcoin should stay around the current level through the weekend and next week.
After all, Bitcoin’s most significant moves seem to happen during active stock market days throughout the week, most of the time responding to stock price movements.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any project.
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