Bitcoin’s June Decline
Bitcoin ended June with a 18.12% decline.
This also marks a 12% drop compared to the April-June period.
As of early July, it is trading around $57,000, a level last seen in February. The decline is attributed to anticipated $9 billion compensation payments from Mt. Gox, miner pressure, and the unchanged US Federal Reserve interest rate.
Expert Opinion from StormGain
Experts at StormGain, a platform for trading, exchange, and storage of cryptocurrency, report that the crypto market faces a liquidity shortage. Investors are shifting to stable dollar instruments due to high US Federal Reserve rates of 5.25-5.5%.
Short-Term Rebound Potential
StormGain analysts think that despite the June decline, Bitcoin could see a short-term rebound in July, potentially rising to $60,000. However, a drop to $40,000 by summer’s end is also possible.
Ethereum ETF Anticipation
A potential short-term growth driver is the anticipated approval of an Ethereum ETF. However, like the Bitcoin ETF, initial investments might be followed by outflows, as seen with a $20 million outflow on July 3.
Market Nervousness
Additionally, market nervousness is fueled by the upcoming US presidential elections. StormGain analysts suggest that this political uncertainty adds another layer of complexity to the already volatile market, making it crucial for investors to stay informed and cautious.
