After hitting a new 2019 high of $13,880 on Wednesday the price of Bitcoin (BTC) sharply declined, and this decline continued through yesterday afternoon when Bitcoin (BTC) bottomed out at $10,300. However, the Bitcoin (BTC) market then pivoted, and now Bitcoin (BTC) has risen over $2,000 in just 24 hours. Currently Bitcoin (BTC) is trading near $12,400 and is on a steady uptrend.
If the Bitcoin (BTC) uptrend continues at this pace it will be quite similar to the late 2017 Bitcoin (BTC) rally, when Bitcoin (BTC) dropped from $18,000 to $13,000 in about two days before continuing on to reach its all-time high near $20,000 only a week later.
The CME Bitcoin Futures expiration was today at 11 a.m. Eastern time, and this may be a positive factor for Bitcoin (BTC). Bitcoin’s (BTC) sharp price drop began only two days before the expiration and was possibly due to CME Bitcoin Futures traders manipulating the market to avoid heavy losses on short positions they took out towards the beginning of June. Indeed, Commodities Futures Trading Commission (CFTC) data indicated that last week there were 14% more short positions than long positions on the CME Bitcoin Futures.
Now that the CME Bitcoin Futures expiration is done, there is no more incentive for CME Bitcoin Futures traders to suppress Bitcoin’s (BTC) price. Further, CME Bitcoin Futures traders who went short in June lost big, perhaps making it less likely that they will go short in July. This is especially true considering the fundamentals, which are Chinese capital outflows, a possible future stock recession, tensions with Iran, and the May 2020 block halving. Going short in July despite these fundamentals could turn out to be a costly decision. Therefore, perhaps CME Bitcoin Futures traders will go long, which would enhance Bitcoin’s (BTC) uptrend.
All major cryptocurrencies are in the green today, although no major cryptocurrencies have beaten Bitcoin’s (BTC) 24 hour gain of 14.8%. This has caused the Bitcoin (BTC) dominance percentage to rise to 63.3%, continuing the recent trend of investors preferring Bitcoin (BTC) over altcoins.
Ethereum (ETH) is up 8.1%, Ripple (XRP) is up 3.5%, Bitcoin Cash (BCH) is up 7.8%, Litecoin (LTC) is up 5.5%, EOS is up 8.2%, Binance Coin (BNB) is up 2.5%, Bitcoin SV (BSV) is up 14.1%, Cardano (ADA) is up 2.7%, Tron (TRX) is up 5.7%, Stellar (XLM) is up 4.4%, LEO is up 5.1%, Monero (XMR) is up 8%, Dash (DASH) is up 11.5%, NEO is up 8.7%, IOTA (MIOTA) is up 9.3%, Cosmos (ATOM) is up 8.9%, Ethereum Classic (ETC) is up 6.3%, Zcash (ZEC) is up 12.6%, and Dogecoin (DOGE) is up 6.5%.
The total crypto market cap has surged $45 billion over the past 24 hours, rising from $303 billion to $348 billion. This is 248% above the bear market low of $100 billion in December, but still $39 billion short of the 2019 high of $387 billion hit a couple of days ago.