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Cryptocurrency market shows signs of stabilization as Bitcoin, Ethereum rebound

Cryptocurrency market shows signs of stabilization as Bitcoin, Ethereum rebound Representation of bitcoin cryptocurrency is seen in this illustration taken January 11, 2024. (Reuters)
By Newsroom
Jun 25, 2024 11:15 AM

The sharp decline in cryptocurrencies that has been ongoing for days somewhat eased in today’s transactions. Bitcoin, which dropped to $58,450 during June 24’s trades, testing its lowest level in seven weeks, rebounded above $61,000 on Tuesday with buying interest. Ethereum also reversed from the $3,250 mark and headed towards the $3,400 level.

Expectations from the bankrupt Japanese cryptocurrency exchange Mt. Gox, indicating that customers will receive their BTCs in July and these could be subject to sale on the market, have been the main determinant on the markets over the past two days.

Cryptocurrency Markets Expert Helin Celik stated that the recent drop in Bitcoin occurred in a low-volume market and a panic-driven manner. Celik, especially noting the lack of significant participation in these sales from major investors known as “whales,” also mentioned that sales from miners have started to decrease from current levels. Celik pointed out that transaction fees did not show a significant increase during the recent decline, emphasizing that this confirms a low-volume market.

Celik, mentioning that the recent retreat of U.S. stock markets from peak levels, news of the German government selling Bitcoins in its possession, and developments indicating that Mt. Gox will return Bitcoins to its customers have been effective on the markets, warned, “From a technical standpoint, a downtrend view continues in Bitcoin. Sustainability above the $60,000 support is crucial. However, if pricing above $64,800 is seen again, a return to the uptrend may be possible.”

Taking into account the approaching process of the Fed’s interest rate cut, Celik expressed that Bitcoin investors should not panic, saying: “This week, on Friday, there is the Core PCE data closely followed by the Fed, and there have been expectations below par since February in this data. Weekly initial jobless claims will also come on Thursday. If these data come in good, a recovery in cryptocurrencies may occur towards the end of the week.”

Last Updated:  Jun 27, 2024 10:11 AM