Worldsfeed News Desk:
Market Update
Bitcoin (BTC) saw a rebound of 6.40% on July 6, climbing to $56,975 after hitting a five-month low the previous day. This recovery signals that traders are beginning to overcome the bearish effects of Mt. Gox’s $8 billion BTC reimbursement and recent selloffs by the U.S. and German governments.
Bitcoin Analysts Reassure Panic Sellers
In the past 24 hours, top crypto analysts and influencers have been working to mitigate the impact of Mt. Gox and government BTC selloffs on Bitcoin’s long-term bullish outlook.
Ki Young Ju, founder and CEO of on-chain analytics platform CryptoQuant, reminded traders that the $8 billion worth of BTC held by governments is merely 4% of the total $225 billion that has flowed into the Bitcoin market since 2023. He emphasized that the Bitcoin market has sufficient liquidity to absorb these government-led selloffs, even amid concerns about the German government potentially dumping its remaining 42,000 BTC holdings in the coming days.
Similarly, independent market analyst Trader Tardigrade compared the current Bitcoin market selloff to past black swan events, which led to sharp rebounds and extended bull cycles. He noted:
“In 2016, 2020, and 2024, $BTC moved in the same pattern. Besides 2020, $BTC Fakeout was seen below the trendline. After reclaiming above the trendline, a Bull Run follows.”
Strong Bitcoin ETF Inflows and Rate Cut Bets Boost BTC
Strong Bitcoin ETF inflows, coupled with increasing bets on a September rate cut, have further boosted BTC’s price upward today.
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