Bitcoin price is pinned below $60,000, but derivatives and stablecoin data show traders remain optimistic.
After a brief encounter with the $63,800 mark on July 1, Bitcoin (BTC) price underwent a significant downturn, reaching a low of $56,746 on July 4. This three-day dip represented an 11% decrease from its peak, and despite efforts to regain the $58,000 support, Bitcoin’s price is still 21.5% below its all-time high of $73,757, recorded on March 14.
Still, the demand for Bitcoin derivatives and stablecoins in China suggests that traders are not ready to give up, pointing to the potential continuation of the 2024 bull market.
The S&P 500 index achieved a new all-time high on July 3, and gold remained just under 4% shy of its record $2,450 high on May 19. The surge in the stock market has been driven by corporate earnings surpassing expectations and the growing anticipation of interest rate cuts by the United States Federal Reserve throughout 2024. This scenario underscores that the downturn in the cryptocurrency market is unrelated to the broader demand for risk-on assets or alternative investments.