Reserve

Source

Bitcoin

Impact

<p>The post <a href="https://coinpedia.org/news/bitcoin-faces-unseen-forces-why-btc-stuck-below-58k/" rel="noopener noreferrer nofollow">Bitcoin Faces Unseen Forces: Why BTC Stuck Below $58K?</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>Bitcoin’s price has been stuck below $58,000 for a long time. Despite being in a bull market, Bitcoin isn’t moving up, and both market and non-market factors are to blame.</p>
<h2 class="wp-block-heading" id="h-impact-of-us-cpi">Impact of US CPI</h2>
<p>The US Consumer Price Index (CPI) rose by 3% in June. Analysts see this as a bullish signal for Bitcoin, but the price isn’t rising. If the US central bank cuts interest rates, incentives for fixed-income investments will drop, and people will look for investments with higher returns.</p>
<p>Chris Larkin, managing director of trading and investing at E-Trade, told CNBC that the Federal Reserve (Fed) is “one step closer to a September rate cut,” especially after real average hourly earnings for workers slowed by 3.9% from the prior year.</p>
<p>The labor force participation rate also increased slightly, from 62.5% in May to 62.6% in June. Despite the data pointing to higher odds of rate cuts, with a 90% consensus for at least one 0.25% rate cut by September, Bitcoin’s price remains below $60,000. Meanwhile, the S&amp;P 500 stock market index is 0.5% below its all-time high, and gold is trading 1.2% below its $2,450 record high from May 2024. Even the Russell 2000 small-cap index, which excludes the 1000 largest US-listed companies, rose 3% on July 11.</p>
<h2 class="wp-block-heading" id="h-german-government-btc-sales">German Government BTC Sales</h2>
<p>The German government continues to dump nearly 50,000 bitcoins, seized in 2013, into the market. These are worth almost $3 billion. According to Watcher Guru, the German government now has only $285 million worth of BTC left.</p>
<div class="wp-block-image">
 <figure class="aligncenter size-full"><a href="https://x.com/WatcherGuru/status/1811458674688188606" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" width="560" height="125" src="https://image.coinpedia.org/wp-content/uploads/2024/07/12023830/watcher-guru-bitcoin-tweet.png" alt="" class="wp-image-326133" srcset="https://image.coinpedia.org/wp-content/uploads/2024/07/12023830/watcher-guru-bitcoin-tweet.png 560w, https://image.coinpedia.org/wp-content/uploads/2024/07/12023830/watcher-guru-bitcoin-tweet-300x67.png 300w, https://image.coinpedia.org/wp-content/uploads/2024/07/12023830/watcher-guru-bitcoin-tweet-150x33.png 150w" sizes="(max-width: 560px) 100vw, 560px"></a>
  <figcaption class="wp-element-caption">
   Source : X (Formerly Twitter)
  </figcaption>
 </figure>
</div>
<h2 class="wp-block-heading" id="h-price-analysis">Price Analysis</h2>
<p>Due to these issues, the market feels like a bear market despite being in a bull market. BTC is currently trading at $57,412, with an RSI value of 48.30. The Bitcoin chart shows a big rejection at $59,500, a strong resistance zone where the MA100 is also located. This 3.87% fall pushed BTC back into the triangle zone, indicating that bears are currently holding a strong base.</p>
<div class="wp-block-image">
 <figure class="aligncenter size-large is-resized"><img decoding="async" width="1024" height="459" src="https://image.coinpedia.org/wp-content/uploads/2024/07/12024002/btc-price-chart-1024x459.png" alt="bitcoin price chart" class="wp-image-326134" style="width: 100%;height:auto" srcset="https://image.coinpedia.org/wp-content/uploads/2024/07/12024002/btc-price-chart-1024x459.png 1024w, https://image.coinpedia.org/wp-content/uploads/2024/07/12024002/btc-price-chart-300x135.png 300w, https://image.coinpedia.org/wp-content/uploads/2024/07/12024002/btc-price-chart-768x345.png 768w, https://image.coinpedia.org/wp-content/uploads/2024/07/12024002/btc-price-chart-1536x689.png 1536w, https://image.coinpedia.org/wp-content/uploads/2024/07/12024002/btc-price-chart-150x67.png 150w, https://image.coinpedia.org/wp-content/uploads/2024/07/12024002/btc-price-chart.png 1879w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Source : TradingView
  </figcaption>
 </figure>
</div>
<p>Bitcoin’s market cap has dropped to $1.1 trillion, which worries investors. Sources suggest that while retail investors face <a href="https://coinpedia.org/price-analysis/bearish-charts-indicate-bitcoins-drop-are-we-heading-for-48500/" target="_blank" rel="noopener noreferrer nofollow">selling pressure</a>, BTC whales and sharks are accumulating. Once the German government finishes selling its BTC and the Mt. Gox repayment pressure eases, the market might stabilize. It could take another 1-2 months for everything to settle down.</p>

Bitcoin Faces Unseen Forces: Why BTC Stuck Below $58K?

Table of Contents

CoinPedia News

دیگر آرٹیکلز 11 جولائی، 2024 پر پبلش کیے گئے ہیں

PeiPei Gains Attention in the Memecoin Market

Meme Coin Project in Limelight: MOONHOP Presale Takes on BOME’s Price Predictions & Charts Cardan...

German Government Sells Bitcoin Quickly

Bitcoin Miner Hut 8 Secures Major Expansion with New West Texas Power Deal

South Korean Police Arrest 70 In Raid On ‘Crypto-powered Drug Dealers’

SEC clears Paxos, rules that BUSD is not a security

Join our free newsletter for daily crypto updates!