Bitcoin price hasn’t broken out of the $33,000 zone, is it ready to break out of current turmoil?
Bitcoin price has traded lower as regulatory concerns re-emerge. As AZCoin News reported, Bitcoin has broken below initial support at $34,000 and is down around 5% in the past 24 hours. BTC could stabilize around $30,000, which is the bottom of a month-long trading range.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price sells off as regulatory concerns resurface
Growing concern from regulators has weighed on cryptocurrency prices over the past few months. This week, China’s crackdown intensified as the nation’s central bank issued a warning about the risks of stablecoins.
Meanwhile, in Europe, several countries are proposing the creation of a new agency to crack down on cryptocurrencies that could potentially be used for money laundering. Concerns also include terrorist financing and organized crime, which need to be addressed at the European Union level. Cryptocurrency risks were also considered by 15 West African countries in parliamentary meetings yesterday.
And in the United States, Senator Elizabeth Warren (D-Mass.) has given the Securities and Exchange Commission (SEC) until the end of this month to figure out its role in regulating cryptocurrencies.
As can be seen, BTC is currently lacking a real catalyst for market-changing events. Expect volatility to remain under pressure until mid or late August.
However, there are still positive indicators showing that the situation is still positive. Among them, the stablecoin supply ratio (SSR) is stabilizing after falling sharply from the January peak. A low SSR implies high quantities of stablecoins on the sidelines – or more buying power to purchase risk-on digital assets.
Stablecoin flows and Bitcoin price | Source: Glassnode
SSR shows that flows have shifted from BTC to stablecoin for most of the year, but recently bottomed out. This could point to investor confidence in price direction as stablecoin cash is put to use.
Also according to Glassnode, Bitcoin funding rates on Perpetual Futures markets have been consistently negative since the Sell-off in May. The last time funding rates remain negative for such an extended period of time was in Mar-Apr 2020.
Elsewhere, ETH has dropped 9% in the past 24 hours. In spite of the price, holders of ETH are moving assets away from exchanges for safekeeping. The Exchange Flow Balance metric shows that July’s 1st week had the largest amount of $ETH moving off exchanges vs. on since April 2017.
The cryptocurrency market today is sometimes down to double digits. In which, FLOW prices slipped as traders unwind their bullish bets from the lately bullish digital assets. The FLOW price has fallen by as much as over 31% in the last 24 hours. Today’s selloff in the FLOW market was broad-based and came in sync with a massive downside correction in the cryptocurrency market.
FLOW price | Source: CoinMarketCap
All and all, the cryptocurrency market was down $52 billion on a 24-hour adjusted, currently hovering at $1,355 trillion.
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