The cryptocurrency markets may experience a “relief rally” following a turbulent June, as analysts suggest that selling pressure on exchanges has diminished. Crypto intelligence platform Santiment expressed optimism for July, noting that small trader capitulation and negative market sentiment could signal the beginning of a rally. Bitcoin (BTC) saw a nearly 7% drop in June, reaching a low of $59,500. This decline was mirrored by other cryptocurrencies, resulting in a $400 billion decrease in the crypto market capitalization from its peak of $2.5 trillion in May. Analyst Minkyu Woo also expressed optimism, stating that sellers appear to be exhausted based on the decrease in Tether (USDT) outflows from exchanges. Woo suggested that this decrease indicates a diminishing of large-scale selling pressure on exchanges and a potential shift towards more positive investor sentiment following the Bitcoin halving event. However, there are potential headwinds for Bitcoin and the crypto market in July, including the unlocking of $9 billion worth of BTC by long-bankrupt exchange Mt. Gox, which could lead to selling pressure as creditors seek to cash out their locked-up crypto assets.
Sellers Exhausted as Crypto Relief Rally Shows Signs of Just Starting