- Bitcoin maintains the $30,000 mark while ether remains flat as Asia opens for trading.
- Traders are awaiting signals of a price increase, potential market recovery expected in the fourth quarter.
In the last 12 hours, the cryptocurrency market has seen slightly more long liquidations than short liquidations, with $7 million longs and $6.73 million shorts liquidated, according to Coinglass data. This indicates a cautious sentiment among traders as they await signs of a price increase.
Bybit’s Ether Chen, the lead financial engineer, believes that the market is currently on standby for indications of a price surge. Chen mentions that the second half of the year may see a slowdown or pause in rate hikes, which could lead to liquidity inflow and potentially drive the market towards recovery. However, Bybit’s team expects a full bull market to materialize only by 2024, contingent upon factors such as the cessation of rate hikes, BTC halving, and the resolution of regulatory issues.
While there are mixed messages regarding market confidence and inflation figures, Tim Frost, CEO of Yield App, suggests that crypto assets, particularly Bitcoin, are likely to continue range trading around current levels. He highlights Bitcoin’s performance, with the cryptocurrency maintaining a value close to $30,000, which represents a nearly 100% increase from its starting price in January.
Regarding the prediction of Bitcoin hitting $120,000 by the end of next year, Frost remains skeptical, emphasizing the need for continued consolidation in the crypto market. However, Frost also sees a bull market on the horizon for 2024, indicating that significant innovation is paving the way for the next wave of crypto adoption.
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In a separate discussion, the viability of a Chinese Yuan (CNY) stablecoin is questioned by Circle’s CEO Jeremy Allaire. He argues that a stablecoin pegged to the CNY would be a better option than a Central Bank Digital Currency (CBDC). However, due to Beijing’s strict control over the exchange rate of the yuan and its capital controls, a yuan stablecoin is unlikely to be implemented. Gita Gopinath, the IMF’s First Deputy Managing Director, highlights the lack of full convertibility and free mobility of capital as obstacles to the yuan’s status as a global currency.
The article concludes by mentioning the ongoing issue of currency manipulation and the reluctance of both China and Taiwan to relinquish control of their currencies to the market. Taipei denies being an active currency manipulator and highlights its open foreign investment and convertibility of foreign currency.
Looking ahead, traders are closely watching the release of the consumer price index (CPI) report, scheduled for Wednesday, July 12, as it could influence the US Federal Reserve’s decision on rate hikes. The market expects at least two more rate hikes by the end of 2023, as stated by Fed Chair Jerome Powell
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