The cryptocurrency sphere may be on the cusp of a “relief rally” following a tumultuous June, with indicators pointing to a reduction in selling pressure across trading platforms.
“Casting an eye towards July, there’s substantial cause for optimism amidst widespread capitulation among smaller traders,” noted the crypto analytics firm Santiment in a dispatch to X on the 2nd of July.
The firm observed that prevailing negative market moods and the financial hits taken by traders could signal the onset of a “relief rally.”
Bitcoin (BTC), for instance, experienced a near 7% decline in June, hitting a low of $59,500 within the month, as reported by Cointelegraph Markets Pro.
Echoing Bitcoin’s downturn, the broader cryptocurrency market saw its valuation dip by approximately $400 billion from its zenith of $2.5 trillion to its nadir in May, as per data from TradingView.
Minkyu Woo, an analyst and verified author at CryptoQuant, shared this sentiment of optimism in a July 1st publication, suggesting that the selling tide is waning.
A depiction of the peak USDT outflows, with annotations highlighting notable increases. Credit: Minkyu Woo/CryptoQuant
Woo’s analysis of the top Tether (USDT) outflows from exchanges since January 2023 revealed a pattern of diminishing outflows following a pronounced spike, with the recent uptick in June hinting at a decrease in large-scale selling activity on exchanges.
He posited that this trend might reflect a shift towards a more bullish investor sentiment in the aftermath of the Bitcoin halving event.
In related news, Bitcoin’s valuation saw a resurgence of interest as it reclaimed the $61.5K mark following a triple candlestick closure.
At present, BTC’s trading value hovers around $62,950, marking a slight 0.4% dip over the past day.
Looking ahead to July, potential challenges for Bitcoin and the cryptocurrency market at large include the release of $9 billion worth of BTC previously held by the defunct exchange Mt. Gox. This could potentially exert selling pressure as creditors look to liquidate the cryptocurrency assets that have been inaccessible for years.
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