The Latest Crypto Market News: July 12 19

Whats happening in the crypto market? Is Bitcoin rising, or is crypto dying? Find answers to all these questions and more in our weekly crypto news round-up.

Bitcoin Rallies Amid News of Mt. Gox Payouts

Last week we saw significant price rallies in the crypto market. One of the cryptocurrencies that has started rising again was Bitcoin, which rallied to its highest price in four weeks, surpassing the $65,000 mark after a dip below $63,000 earlier.

This rally was partly attributed to movements in wallets associated with the defunct Mt. Gox exchange, which transferred $2.8 billion worth of Bitcoin, likely in preparation for creditor distributions. The markets reaction was broad-based, with the CoinDesk 20 index gaining nearly 3%, indicating strong positive sentiment across major cryptocurrencies.

The broader crypto market rally was also influenced by historical Bitcoin miner capitulation patterns, which have historically led to significant price increases post-halving. Analysts suggested that if the current miner capitulation period ends soon, Bitcoin could potentially peak at $223,000 based on historical data from previous cycles. These patterns, combined with the influx of institutional investments and consistent price retests of resistance levels from previous all-time highs, have fueled bullish sentiment among traders and analysts.

Despite these positive signals, Bitcoins performance faced challenges from the traditional finance markets. While the S&P 500 and gold reached new highs, Bitcoin struggled to maintain its price above $65,000. This discrepancy was partly due to shifts in spot ETF buyers strategies, who might have moved away from spot positions for tax reasons or to use shares as collateral for traditional finance trades. Additionally, hedge funds engaging in arbitrage trades have neutralized the impact of Bitcoins spot ETF inflows by selling futures contracts while buying equivalent spot positions.

The Mt. Gox payouts added another layer of complexity to Bitcoins market dynamics. As the defunct exchange began repaying creditors, fears arose about the potential sell pressure from these distributions. However, analysts like Ki Young Ju from CryptoQuant and others have argued that these fears are overestimated. They believe the market can absorb the liquidation if it occurs gradually, without causing severe disruptions. Additionally, some rehabilitation creditors have already received their payouts, and the process is expected to continue over the next few months.

What does this mean for the crypto market?

Historical precedence suggests that markets can absorb distributions like the current one if managed properly, but unexpected sell-offs could lead to temporary price drops. In the long term, the patterns observed in Bitcoins post-halving periods indicate a potential for substantial price increases. If the current miner capitulation ends soon, as some analysts predict, Bitcoin could see a peak of over $200,000 based on historical data.

This potential for high returns could attract more institutional investors, leading to further price appreciation. However, as traditional financial markets continue to perform well and US inflation decreases, Bitcoins narrative as an alternative store of value might weaken, potentially limiting its upside.

Historically, Bitcoins major price rallies have often been followed by periods of significant corrections. Investors should remain cautious and consider these historical patterns when making investment decisions. The ongoing Mt. Gox payouts also serve as a reminder of the risks associated with holding large amounts of Bitcoin in centralized exchanges. Overall, while the short-term outlook for Bitcoin appears bullish, long-term investors should remain vigilant and consider the broader economic context and historical precedents.

A Good Week For Crypto: XRP and SOL Surge Ahead of Curve

This past week has been particularly good for XRP and Solana (SOL). XRP, developed by Ripple Labs, saw a 13% increase during European trading hours, capping a 20% rise over the week. This surge was driven by the announcement from CME Group and CF Benchmarks of new indices and reference rates for XRP, which boosted investor confidence. Additionally, XRPs trading volume outperformed Solana, reaching $4.07 billion compared to Solanas $3.14 billion.

Ripples strategic moves, including a $1 million donation to a pro-crypto political action committee, also contributed to positive sentiment. This donation aims to support the election of pro-crypto lawyer John Deaton and challenge the anti-crypto Senator Elizabeth Warren. Despite ongoing legal battles with the SEC over the classification of XRP, Ripples actions and market performance indicate a bullish trend for XRP.

Technical analysis shows XRP breaking above key resistance levels, with significant buying interest near the $0.42 mark. If XRP stabilizes above $0.55, it could lead to sustained bullish trends towards $0.60 and beyond. Similarly, Solana has shown impressive gains, with a notable 19% increase over the week. Predictions suggest that Solana could rise by 1,800%, aiming for targets around $190 and $200 if it maintains support at $140-$145.

The bullish sentiment around XRP and Solana is further supported by increased trading volumes and open interest in futures. XRPs open interest has more than doubled, suggesting heightened expectations of future price volatility. Analysts also highlight the formation of bullish patterns on both XRP and Solana charts, indicating potential for even further gains.

What does this mean for the crypto market?

The surges in XRP and Solana have significant implications for crypto investors in both the short and long term. In the short term, the bullish momentum and increased trading volumes suggest that these assets may continue to perform well, attracting more investors and driving prices higher. Historical patterns indicate that such bullish trends can lead to substantial gains, as seen with previous price rallies in the crypto market.

In the long term, the successful implementation of new financial instruments and strategic political moves could solidify XRP and Solanas positions in the market. For XRP, overcoming legal challenges and establishing reliable pricing mechanisms could enhance its appeal to institutional investors. Similarly, Solanas growing ecosystem and potential for cross-chain integration with Bitcoin indicate robust future growth prospects.

Is there going to be another crypto bull run?

While Bitcoin (+11%), Ethereum (+10%), Solana (+19.3%) and XRP (+20.3%) have all had an amazing week, the biggest winner in the top 100 was the beloved cute memecoin dogwifhat (53%). It was closely followed by Worldcoin (+44%). Despite the ongoing rallies, there were a few losers within the top 100, too: Celestia (-6.8%) being the biggest one.

Outside the top 100, things were, as usual, a bit more chaotic. HASHAI (+137%), GODS (+137%), and ULTIMA (+131%) pulled ahead of the pack, while DOP (-45%) and WMT (-15.7%) lead the race of losses.

Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the authors opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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