Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
- Bitcoin dipped under $54,000 early on Friday as the crypto market suffered a steep correction.
- Ethereum lost key support at $3,000, erasing gains ahead of the anticipated approval of the Spot Ether ETF.
- Ripple dropped to its lowest level in fifteen months, down to $0.38 on July 5.
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
Bitcoin, Ethereum and Ripple update
- BTC trades around $55,200 early on Friday. The asset erased nearly 5% of its value on the day. The German government's Bitcoin transfers and Mt.Gox repayment have ushered uncertainty among traders. Data from IntoTheBlock shows that 75% of Bitcoin wallet addresses are profitable at the current price. This could increase the selling pressure on BTC if traders continue taking profits. Bitcoin faces second largest liquidation event in history, erasing 25% of Base meme coins’ market cap
- Ethereum dips under $3,000 on Friday. The altcoin is trading around $2,940, down nearly 4% on the day. Ethereum traders are awaiting approval on the Spot Ether Exchange Traded Fund (ETF) by the US Securities and Exchange Commission. Ethereum breaches key support as SEC delays ETF decision
- Ripple is down below $0.4200 on Friday. The altcoin hit its lowest level in fifteen months, erasing gains from 2024. Ripple traders take losses over $75 million as XRP loses key support at $0.45.
Chart of the day
LTC/USDT daily chart
Litecoin is currently in a downward trend. The altcoin could extend losses by another 11.50% and drop to its November 14, 2022 low of $53.24. The red bars on the Moving Average Convergence Divergence (MACD) indicator support the bearish thesis for Litecoin.
A daily candlestick close above the Fair Value Gap at $65.58 could invalidate the bearish thesis and push LTC towards the upper boundary at $71.
Market updates
- Mt.Gox moved Bitcoin worth $2.71 billion, per Akham Intelligence, early on Friday. The news could increase the selling pressure on Bitcoin and drive the asset lower.
UPDATE: Mt. Gox moving $2.71B BTC
— Arkham (@ArkhamIntel) July 5, 2024
In the past 8 hours, Mt. Gox wallets moved 47,229 BTC ($2.71B) from the cold wallet 1HeHL.
2701.8 BTC ($148.4M) was moved out of Mt. Gox wallets with 1544.7 BTC ($84.9M) sent to Bitbank through Gox address 1PKGG, and 1157.1 BTC ($63.6M) sent to… pic.twitter.com/sJEuJB7GwC
- Former Solicitor General Donald Verrilli says that regulators are debanking cryptocurrencies deliberately.
NEW: Former Solicitor General under Obama, Donald Verrilli, says regulators are deliberately debanking #crypto:
— Eleanor Terrett (@EleanorTerrett) July 4, 2024
“Despite the digital asset industry's pressing need for banking services, federal regulators have waged a concerted, coordinated campaign to debank the industry.” pic.twitter.com/vL6E5vqPRd
- Data from f2pool shows that Bitcoin drop under $56,000 was met with only six profitable mining machines, with several miners operating at losses.
According to f2pool data, when Bitcoin fell below $56,000, only six mining machines were still profitable, including S21 Hyd, S21, A1466I, S19 XP Hyd, S19 XP and M56S++. At a rate of $0.08/kWh, ASICs less efficient than 23 W/T operate at a loss. pic.twitter.com/SUMOvv1Ot4
— Wu Blockchain (@WuBlockchain) July 5, 2024
Industry updates
- MakerDAO quarterly revenue hit an all-time high of $85 million despite the recent correction in the crypto markets.
Quarterly revenue for @MakerDAO at all-time highs of ~$85 million. pic.twitter.com/PZcggOSz1M
— Token Terminal (@tokenterminal) July 4, 2024
- German Member of Parliament (MP) Joana Cotar criticized the government’s decision to sell Bitcoin and expressed their view that BTC should be used as a national strategic reserve.
German MP Joana Cotar strongly criticized the government's decision to sell Bitcoin, believing that this move exacerbated market volatility and could have a long-term negative impact on the stability of the cryptocurrency market, and that Bitcoin should be used as a national…
— Wu Blockchain (@WuBlockchain) July 5, 2024
- On July 4, nine ETFs noted nearly $35 million in outflows, with rising uncertainty among institutional and retail investors.
July 4 Update:
— Lookonchain (@lookonchain) July 4, 2024
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
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
