This morning, the price of bitcoin dropped to its lowest point in the last week, around $ 32,400. The current decline was the largest since May 28 and amounted to 10%.
“China continues to put pressure on cryptocurrencies, first by talking about a mining ban, and then clearing the most popular social network Weibo from the accounts of cryptocurrency opinion leaders,” said Jehan Chu, managing partner at Kenetic Capital. “All this speaks of tightening the loop around cryptocurrencies on the mainland.”
Chu also noted that the possibility of scaling back the US quantitative easing policy is stifling markets in general, but added that the long-term premise is still in place.
“Bitcoin’s cross of death is approaching every day and given the current market behavior, it seems more likely,” said analyst Lark Davis.
William Clemente III draws attention to the fact that the balance of bitcoins in miners’ wallets over the past week has decreased by more than 5,000 BTC, speaking of the estimated sales.
“Bitcoin stays below the 200-day simple moving average for 17 consecutive days. This metric has always indicated the end of a bull market and the beginning of a bear market, ”writes investment manager Timothy Peterson.
The total capitalization of the cryptocurrency market decreased by 11% to $ 1.55 billion, but still remains twice as high as at the beginning of the year. Large altcoins lose 10 to 20%. Ether was again below $ 2,500, and Binance Coin was below $ 350.
CoinShares reported that investors have continued to withdraw assets from bitcoin funds over the past week, with net outflows reaching $ 141 million, a record amount since the preparation of reports. This corresponds to 8.3% of net inflows recorded since the beginning of this year. The total outflow for all cryptocurrency funds amounted to $ 94 million, that is, some of them continued to attract investments. So, ETH funds turned out to be the most demanded and received $ 33 million. XRP and Cardano raised $ 7 million and $ 4.5 million, respectively.
“The mood last week was more mixed,” wrote CoinShares. – Only one supplier continued to experience outflows, while others recorded inflows. Despite continued net outflows, we see this as an early sign of a shift in sentiment relative to May, when most suppliers were recording outflows and sentiment was predominantly negative. ”