The cryptocurrency market is poised for a rebound this month after enduring a turbulent June. Analysts suggest that the selling pressure on exchanges seems to have eased and strong stablecoin outflows indicate a potential slowdown in selling activities. Crypto intelligence platform Santiment observes that following the small trader capitulation, the negative sentiment and trader losses in the past could now pave the way for a ‘relief rally’.
Bitcoin experienced a decline of almost 7% in June hitting a month low at $59,500, as recorded by Cointelegraph Markets Pro. The downfall wasn’t exclusive to Bitcoin, the entire crypto market followed suit, losing around $400 billion of its market capitalization from its peak of $2.5 trillion down to its low in May, as per TradingView.
An optimistic outlook is also echoed by Minkyu Woo, Analyst and verified author of CryptoQuant, who reported on July 1 that sellers appear to be weary at last. Woo observed a decrease in outflows after a robust surge since January 2023, thus suggesting a reduction in large-scale selling pressure on exchanges. He posits that these reduced outflows indicate that investors are now more willing to hold their assets rather than withdrawing cash from the market.
Such a shift might imply a positive sentiment after the Bitcoin halving event. However, looming challenges in July for Bitcoin and other cryptocurrencies could come from the $9 billion worth of BTC scheduled to be unlocked by the long-bankrupt exchange Mt. Gox, potentially adding to selling pressure, as creditors eager to recover their investments might want to cash out their crypto assets.