In the last few days, the cryptocurrency market experienced drop. Bitcoin's value is displaying bearish momentum. Meanwhile, the altcoin market saw a surge in selling, resulting in price corrections of 4-10% among the top ten altcoins. Will Bitcoin's price crash to $50,000? Let's dive into this July 2024 Bitcoin price prediction article for more insights.
How has the Bitcoin price moved recently?
As of today, Bitcoin is priced at $58,504, with a 24-hour trading volume of $110.82 billion and a market cap of $1.15 trillion, commanding a market dominance of 53.02%. The BTC price has fallen by 4.12% in the last 24 hours.
Bitcoin hit its peak on March 14, 2024, trading at an all-time high of $73,628. Its lowest price was recorded on July 17, 2010, at just $0.05. Since its all-time high, the lowest it has dropped to is $56,721, while the highest since that cycle low was $71,968. Currently, market sentiment around Bitcoin is bearish, with the Fear & Greed Index reading at 44, indicating fear.
The circulating supply of Bitcoin stands at 19.70 million BTC out of a maximum supply of 21.00 million BTC. The annual supply inflation rate is currently 1.49%, with 288,478 BTC generated over the past year.
Why is Bitcoin Price Falling?
The U.S. Department of Labor is set to disclose the most recent unemployment claims, serving as a critical barometer of the country's economic condition. Additionally, the Federal Reserve will publish the FOMC meeting minutes, anticipated to offer valuable insights into the economic projection.
In light of the forthcoming U.S. general election, the Fed is expected to maintain a dovish position and potentially implement interest rate cuts.
Recently, U.S. spot Bitcoin ETFs have experienced significant volatility in cash flows. After five consecutive days of positive inflows, these ETFs saw a cash outflow of approximately $14 million on Tuesday.
The impending Mt. Gox distribution and increased sales from the German government have dampened investor enthusiasm, contributing to the decreased demand for spot Bitcoin ETFs and negatively impacting bullish sentiment.
Will Bitcoin Price Crash to $50,000?
The cryptocurrency market has seen substantial volatility, particularly in Bitcoin's spot ETFs, which recently experienced a $14 million outflow following a streak of positive inflows. Factors such as the impending Mt. Gox distribution and significant sales from the German government have weighed heavily on bullish sentiment, causing fluctuations in demand.
Despite this, Bitcoin has demonstrated remarkable performance over the past year. Its price has surged by 90%, outperforming 62% of the top 100 crypto assets and even surpassing Ethereum. Additionally, Bitcoin is currently trading above its 200-day simple moving average, indicating a generally upward trend in the long term.
While Bitcoin has only seen 14 green days in the last 30 (47%), it is currently trading near its cycle low and is considered oversold, suggesting a potential price rebound. High liquidity, bolstered by a market cap of $1.15 trillion, further supports the argument against a drastic price drop. The yearly inflation rate of 1.49% is relatively modest, with a current circulating supply of 19.70 million BTC out of a maximum of 21.00 million BTC.
Given the current market conditions and Bitcoin's historical performance, a crash to $50,000 appears unlikely. The cryptocurrency's resilience, evidenced by its substantial yearly gains and outperforming other major assets, combined with its position above the 200-day moving average, suggests stability rather than a severe decline.
However, the bearish sentiment reflected in recent cash outflows and the broader economic uncertainty, including potential interest rate cuts from the Federal Reserve, could contribute to short-term volatility.
