Crypto Week Ahead: Bitcoin Dip Leads To Increased Interest Among Buyers

Crypto Week Ahead: Over the past seven days, Bitcoin (BTC) price achieved a high of $63,397.98.

BTC dominance, at the time of writing, stood at 53.70 percent. (Image credit: Eivind Pedersen/Pixabay)

Source : Eivind Pedersen/Pixabay

Bitcoin (BTC), the most popular cryptocurrency in the world, dipped down to nearly $54,000 mark last week. While it lost all its gains from the previous weeks, there is a certain silver lining as the low prices led to an increased interest among investors, who  in turn gave way to net inflows of $143.1 million in US-based Bitcoin spot exchange-traded funds (ETFs). It is largely expected that BTC’s consolidation point will lie between $53,000 and $57,000 this week. 

Before we proceed further, readers should note that the overall crypto market and coin prices are extremely volatile in nature. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. This article is aimed at helping investors stay on top of the current market scenarios and the biggest events that have already taken place as well as some upcoming occurrences that are worth noting. Investors are advised to do their own research before taking any call. 

Crypto Prices Over The Past Week

Last Monday (July 1), the overall crypto market cap stood at $2.33 trillion. BTC price stood at around $63,200. ETH price stood at around $3,480.

A week later, the overall market cap dipped to $2.03 trillion.

DeFi's total volume stands at $4.74 billion, at 7.15 percent of the total market 24-hour volume. In the case of stablecoins, the overall volume stands at $61.4 billion, at 92.61 percent of the total 24-hour market volume. As per CoinMarketCap, the overall market fear and greed index stood at ‘Fear’ with 36 points (out of 100).

BTC dominance, at the time of writing, stood at 53.70 percent.

Over the past seven days, Bitcoin achieved a high of $63,643.96 (on July 2) and a low of $54,065.33 (July 5).

Ethereum, on the other hand, saw a high of $3,485.83 (July 1) and a low of $2,854.15 (July 5).

Crypto Events To Note

Paraguay is quickly becoming a sought-after destination for Bitcoin mining operations, thanks to its affordable and abundant hydroelectric power. This shift started in 2018, with miners attracted by the low-cost energy sourced primarily from the Itaipu Dam, one of the largest hydroelectric dams globally. 

The interest in Paraguay as a Bitcoin mining haven surged significantly in 2021 following China's crackdown on cryptocurrency mining. This ban prompted a mass migration of mining operations from China to more favourable regions, with Paraguay emerging as a top choice due to its energy advantages.

Furthermore, Twitter founder and billionaire entrepreneur Jack Dorsey has projected a future where Bitcoin surpasses the US dollar to become the world's leading currency. He envisions the cryptocurrency reaching a staggering value of $1 million by the year 2030. Dorsey emphasises Bitcoin's decentralised structure, arguing that it has the capacity to democratise financial systems and lessen dependence on conventional banking.

Dorsey, a well-known advocate for digital currencies, suggests that Bitcoin's unique attributes make it a strong candidate to revolutionise global finance. The shift towards bitcoin, he believes, could lead to a more equitable and accessible financial landscape.

Lastly, in a strategic financial move, the German government has sold off 1,400 Bitcoin from its reserves, bringing the nation's total holdings from 41,226 BTC down to 39,826 BTC. This decision comes as Bitcoin has experienced a 1.7 per cent decline against the US dollar within the past 24 hours, with its current value hovering just above $57,000. The sale highlights ongoing shifts in governmental cryptocurrency strategies amid fluctuating market conditions.

What Crypto Traders Are Saying About Current Market Scenario

Mudrex co-founder and CEO Edul Patel told ABP Live, "Bitcoin is trading at $55,000 after dropping to $53,000 last week. BTC hasn't gathered enough momentum for a sharp upward move. The ongoing battle between bulls and bears suggests that Bitcoin is likely to consolidate between the $53,000 and $57,000 range this week. The lower price levels continue to attract buyers, providing some support in this range.”

WazirX Vice President Rajagopal Menon offered his take, “During the last week, Bitcoin (BTC) has faced a tug-of-war between bulls and bears. Buyers aim to keep the price within the $56,552 to $73,777 range, while sellers pulled the price near $53,500 on July 5. Lower levels attracted buyers, resulting in net inflows of $143.1 million in US-based spot Bitcoin ETFs. Crypto experts suggest this dip presents a buying opportunity. Bitcoin’s drop has increased selling in several altcoins, but a few hold strong support levels, poised to lead recovery if Bitcoin moves toward $60,000. Despite bearish momentum, positive RSI divergence suggests a slowing bearish trend. A break above the 20-day EMA could signal a sustained recovery.”

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.