Bitcoin, Dogecoin slide, Ethereum rises as U.S. government’s $2 billion worth of King Crypto transfer spooks the market.
| Cryptocurrency | Gains +/- | Price (Recorded 9 p.m. EDT) |
| Bitcoin (CRYPTO: BTC) | -2.95% | $66,682.98 |
| Ethereum (CRYPTO: ETH) |
+1.23% | $3,326.92.63. |
| Dogecoin (CRYPTO: DOGE) | -1.09% | $0.1296 |
What Happened: Bitcoin hit $70,000 early in the morning but began to retrace as a wallet linked to the U.S. Department of Justice moved out $2 billion in Bitcoins.
The news resulted in panic selling, bringing King Crypto below $67,000.
The transfer didn’t affect Ethereum although the world’s second-largest cryptocurrency remained choppy throughout the day.
About $193 million locked in derivatives positions was liquidated in the last 24 hours, with long liquidations equating to $136.61 million.
The slump caused a nearly 3% decline in Bitcoin’s Open Interest, indicating forced liquidations of bullish bets. The decline in longs vis-à-vis shorts lent credence to the narrative.
The market cooled down as the Cryptocurrency Fear & Greed Index fell from 74 to 67 in the last 24 hours. That said, the broader mood was still one of “Greed.”
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 9 p.m. EDT) |
| BOOK OF MEME (BOME) | +14.27% | $0.0104 |
| Mog Coin (MOG) | +12.57% | $0.000001906 |
| AIOZ Network (AIOZ) | +12.19% | $0.6339 |
The global cryptocurrency market stands at $2.39 trillion, shrinking 1.82% in the last 24 hours.
Stocks inched marginally higher Monday. The S&P 500 added 4.44 points, or 0.08%, to close at 5,463.54. The tech-heavy Nasdaq Composite gained 0.07% to end at 17,370.20. The blue-chip index Dow Jones Industrial Average slid 0.12% to 40,539.93 at the closing bell.
Bullish investors are anticipating a rebound in tech stocks as tech giants like Microsoft Corp. (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL) are set to report their second-quarter earnings this week.
The Federal Reserve will hold the FOMC meeting on 31 July, with benchmark interest rates expected to remain unchanged, according to the CME FedWatch tool.
See More: Best Cryptocurrency Scanners
Analyst Notes: Economist Alex Krüger linked the Bitcoin correction in part to Vice President Kamala Harris “doing very well in the polls.”
“The Trump trade is long bitcoin and long small caps. The Kamala trade is the opposite,” Krüger emphasized.
A widely-followed X account, Bitcoin Archive, expressed confidence in the ability of King Crypto to make big moves quickly.
“Just remember that Nvidia went from $1.3 Trillion (current BTC market cap) to 3.3 Trillion in just 6 months. Big moves can happen fast,” they said. “If Bitcoin did the same it would break $180,000 just after Christmas.”
Photo by Igor Faun on Shutterstock
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