The recent bull run for cryptocurrency markets is slowing down as Bitcoin’s price retreats to $22k after peaking at $24k on July 20th. The global crypto market cap is down by 4% but remains well above the $1 trillion market, with a current valuation of $1.03 trillion. Ethereum’s price is also down 6% but remains above $1,500. Is the bull run over? Will Bitcoin’s price continue to rise? Let’s look at any relevant crypto and stock market news that could give us a glimpse into the future.
- The cryptocurrency bull market subsides as Bitcoin and Ethereum’s markets retreat.
- Tesla’s Q2 earnings report reveals a massive Bitcoin selloff of over $300 million.
- Finland liquidates over $47 million worth of seized cryptocurrency from drug busts.
- Bitcoin miners move coins out of wallets in a possible capitulation event.
Bitcoin Bull Run Subsides, Tesla’s Q2 Report Reveals Massive BTC Selloff
While the volatility of Bitcoin’s price is increasing, the digital asset’s price performance over the past seven days is still spectacular, rising by over 15% this week. We are seeing signs of the bullish momentum slowing down as the trading volume of Bitcoin is down by 15% in the past 24 hours, currently at $42.5 billion.
The most relevant news affecting Bitcoin and the likely culprit behind BTC’s price retreat is Tesla’s Q2 2022 earnings report, which mentioned that the company sold 75% of its Bitcoin, worth $936 million.
While Tesla barely managed to meet the expected earnings of $16.88 billion, with Q2 revenue of $16.9 billion, Tesla stock saw minimal growth of only 0.3% in the past 24 hours after the report’s release.
Moreover, the fact that Tesla sold 75% of its Bitcoin holdings at a loss after investing $1.5 billion in cryptocurrency last year is a heavy hit for crypto markets. Last year, Tesla claimed that cryptocurrency has long-term potential and was even able to sell some cryptocurrency at a profit. However, the stark change in attitude towards Bitcoin due to the current bear market only adds to the uncertainty surrounding cryptocurrency markets.
Earnings Season Does Little to Help Markets
With the economic uncertainty and rising inflation, companies that meet or even exceed earning expectations in Q2 2022 aren’t likely to show significant upside in their stocks. With the Fed planning to raise interest rates by 75 basis points, the stock market is full of uncertainty. After a seven-month-long bear market, investors are cautious even when it comes to corporations that meet earning expectations.
In other not-so-positive news, according to a Bloomberg report, Finland decided to liquidate its seized Bitcoins from drug busts worth over $47 million, creating additional bearish pressure on the market.
Last, on-chain analysis data from CryptoQuant revealed that Bitcoin miners are moving BTC out of their wallets in a possible capitulation event. Whether those coins have been sold yet is unknown, but chances are, with the relatively sharp retreat of Bitcoin’s price, the market could be facing immense selling pressure from miners.
Bitcoin Price Prediction
Bitcoin is trading at $22.7k, down 4.75% in the past 24 hours. Its market cap is $435 billion, with a trading volume of $42 billion. BTC is likely to test support at the $22-23k range before attempting to break through the $25k resistance level.
The short-lived bull run has subsided for now, but the recent correction could be a necessary evil for the market to build additional momentum before another bull run.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any stocks.
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