Bitcoin rebounded to $62,000 this morning, but whether it has reached the bottom and rebounded remains to be further confirmed. This article summarizes the analysis and opinions of institutions and experts to help readers judge the future development of cryptocurrencies.
Table of Contents
10X Research: Bitcoin is severely oversold
CryptoQuant: Market may see a V-shaped rebound
Matrixport: Bitcoin greed and fear index may have reached a low point
Bitfinex: Short-term market sentiment remains bearish
The recent cryptocurrency market has been weak, with Bitcoin even briefly falling below $60,000 on the 25th, hitting $58,402. Although Bitcoin has rebounded slightly at the time of writing, reaching a high of $62,422 at 3 am on the 26th, investors are still cautious about the future of BTC.
The following section quickly summarizes the current analysis and opinions of various institutions and experts to see how they are judging the situation.
10X Research: Bitcoin is severely oversold
Regarding the current decline of Bitcoin, cryptocurrency research institution 10X Research pointed out in a research report released on the 25th that there are many factors contributing to the market downturn, including:
– Cryptocurrency exchange Mt. Gox announcing repayment to creditors starting in early July, which may lead to the dumping of tens of thousands of Bitcoins in the market
– The German government may sell its confiscated Bitcoins, totaling nearly $3 billion
– Selling by Bitcoin miners
– Outflows from Bitcoin ETFs
– Profit-taking by Bitcoin OGs
– …
However, 10X Research stated that Bitcoin is currently in a severely oversold stage, with market greed and fear indices almost at their lowest levels. Therefore, Bitcoin may be at a relatively low price point at the moment. Perhaps after further decline, Bitcoin will see a rebound.
CryptoQuant: Market may see a V-shaped rebound
CryptoQuant analyst Mignolet stated that based on the UTXO profit percentage during Bitcoin’s consolidation phase last year, although Bitcoin is currently in a consolidation phase, the UTXO profit percentage has clearly moved away from the low point. Therefore, Bitcoin whales may react to market panic, indicating that the market may see a V-shaped rebound.
Matrixport: Bitcoin greed and fear index may have reached a low point
Matrixport also pointed out yesterday that the Bitcoin greed and fear index may have reached a low point, indicating that the market may have reached a bottom and could rebound.
Bitfinex: Short-term market sentiment remains bearish
While many analysts believe that the market may have bottomed out, cryptocurrency exchange Bitfinex stated in its latest weekly report that the US Bitcoin spot ETF continued to experience net outflows last week, exceeding $540 million. This indicates that bearish ETF investors are reacting to negative news in the market.
In addition, open interest contracts for Bitcoin futures on the CME and other trading platforms have also decreased significantly, indicating a significant reduction in arbitrage trading related to ETF fund flows.
Overall, market sentiment still seems to be predominantly bearish.