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Bitcoin Resilience Amid Market Volatility
Explore how Bitcoin demonstrates resilience amidst market volatility, showcasing its ability to withstand fluctuations and maintain stability in the crypto space.
Latest Prices
During the European morning, Bitcoin showed resilience by bouncing back from a recent dip, rising above $58,000 after briefly dropping to just above $54,000. Currently trading around $57,200, Bitcoin is down approximately 0.4% in the last 24 hours. The CoinDesk 20 Index also recovered, climbing 0.33% following a dip earlier during the Asian morning. Over the past 24 hours, there have been $175 million in long liquidations, with Bitcoin having experienced a 13% loss last week, reminiscent of the aftermath of FTX’s collapse.
Top Stories
Recent events involving Germany’s Bitcoin sales and Mt. Gox’s reimbursements have injected volatility into the crypto market, with potential ongoing repercussions. Germany, the largest economy in the eurozone, currently holds 39,826 BTC valued at $2.2 billion, accounting for almost 9% of Bitcoin’s 24-hour trading volume of $25.3 billion. This substantial stash could continue to exert selling pressure, leading to further market turbulence. In addition, the German Federal Criminal Police Office has seized and liquidated over 10,000 BTC this year, stemming from the closure of Movie2k.to, a defunct privacy website from 2013.
According to investment bank Jefferies, Bitcoin mining proved more profitable in June compared to May, with a 2% price increase and a 5% drop in network hashrate. Analyst Jonathan Petersen noted that June marked a period of recovery following the effects of the halving, which were most pronounced in May. The halving event, occurring in April, reduced miners’ rewards by 50%, impacting the rate of Bitcoin supply growth. Hashrate, representing the total computational power in the network, serves as an indicator of industry competition and mining difficulty.
Chart of the Day
– Omkar Godbole