The crypto market took a hit on Friday, mirroring the broader market downturn. The top three US indices tumbled between 1.5% and 2.5%, while Bitcoin plummeted by 4.5%, trading at $61,873 with a market cap of $1.21 trillion. This sharp decline signals a growing sense of caution among investors, who seem hesitant to capitalize on the dip.
Over the past week, Bitcoin has fallen by 10%, with most of the decline happening in the last four days. Popular crypto trader Stockmoney Lizards predicts that Bitcoin might continue to drop under the current market conditions.
Crucial Price Points to Watch
Stockmoney Lizards suggests that if Bitcoin closes above $61,800 on a daily or weekly basis, it could signal a short-term reversal and possible price increase.
However, if Bitcoin fails to close above this level, it may continue to drop, with a target price of $56,800. Traders are closely monitoring these key levels for signs of short-term trends.
Despite the current fluctuations, Stockmoney Lizards is optimistic about Bitcoin’s long-term prospects. They expect a significant rebound in late third or early fourth quarter of the year. While short-term trends may be unpredictable, the overall market conditions could favor a substantial increase in Bitcoin’s price later in the year.
ETF Outflows Reach New Highs
On Friday, Bitcoin ETF outflows hit $237 million, according to Farside Investors. Fidelity’s FBTC saw the largest outflows at $104 million, followed by Ark Invest’s ARKB with $87.7 million. BlackRock’s IBIT and Grayscale’s BTC were the only funds to record net inflows.
These large outflows came despite Morgan Stanley’s announcement that qualified clients could now invest in Bitcoin ETFs, highlighting the impact of global economic factors on the market.
Also Read: Bitcoin and Ethereum Q2 Price Movement Analysis Report