IS BITCOIN RECOVERING IN JULY?
5 Reasons why BTC is likely to get stronger this month
Many analysts have predicted a bullish July and Bitcoin has shown signs of it during the weekend. But is it implying a longer term recovery? Christine Masters at cryptovest.com has looked at five factors that suggest a positive scenario for July.
Masters says, “Bitcoin (BTC) still managed to add $500 within days, showing that falling through the $5,800 level is delayed, at least in the short term. BTC saw enough optimism over the weekend to recover the $6,300 level.”
Here are five factors that support a positive outcome for BTC for July:
FACTOR #1: Tether is coming back
The influence of USDT pairings has always been strong, concerning Bitcoin. Recently, two typical fund movements are taking place: funds are either withdrawn to USDT for longer periods, or funds converted to USDT are moved to support altcoins and ICOs. USDT’s influence on Bitcoin is normally around 14-17%, but it has risen over the weekend beyond 30%. There seems to be a concentrated effort on USDT’s part to support Bitcoin. It is also possible that behind this powerful BTC support move there is a USDT whale.
FACTOR #2: Altcoins are disappointing
A new bull market may begin with BTC, which is still the most active coin in the trading space, taking up 30% of all deals. It is supported by the fact that altcoins and tokens had their rally in April and May, and they could not repeat the December success. The enthusiasm disappeared, which may mean that the funds will flow back into Bitcoin. Ethereum has been getting weaker, and there is no asset that would be promising to replace BTC, so everyone who is backing out of altcoins and stays loyal to the crypto market will probably invest in Bitcoin.
FACTOR #3: Low volumes can bring about growth
Christine Masters explains it like this: “During the bear market, Bitcoin has enough long-term holders who still don’t want to abandon the ship, even at sliding prices. Low volumes signify a low appetite for buying, but also no real desire to dump BTC. Those who sold in anger or despair may already be gone from the markets.” So, a steady, reliable, even though relatively slow increase in BTC’s value may attract more and more attention and capital.
FACTOR #4: No bad news on the horizon
No doubt, Bitcoin is still sensitive to bad news. But the good news is that the crypto market moves fast and discount the bad news of the past few weeks that had driven BTC’s price down. So, with no bad news on the horizon, Bitcoin may experience a rise in interest from investors.
FACTOR #5: Talk of a Bitcoin ETF
“This is one big factor possibly heralding the inflow of institutional money into Bitcoin”, says Christine Masters. “While there may be enough BTC to invest in, the market has suffered from a lack of fresh funds. The printing of USDT may not be enough, and neither can be the creation of TrueUSD (TUSD) tokens, where the supply is also supposedly backed by real fiat investments. For Bitcoin, the inflow of institutional money in a fully legalized asset like an ETF would be a sign of legitimacy.” So far, mostly only small-scale test investments have been seen from traditional finance firms but that’s already a good sign.
As @RamenofBinance posted: “Approval of #Bitcoin $BTC #ETF will be the single biggest event in the history of bitcoin. It will open the floodgate of institutional money and herald the 5th wave of bitcoin's climb on a macro basis.”
Let’s see what July makes of these promising possibilities.