As Bitcoin declined sharply touching $49,000 on Monday, this in turn triggered a huge sell-off in markets.
Binance, the largest cryptocurrency exchange in the world, recorded a net inflow of $1.2 billion in the past 24 hours [Tuesday], marking one of the highest net inflow days this year, said the CEO of Binance Richard Teng quoting data from Defi Llama. The huge inflows indicate strong investor confidence, notes Teng.
Amid the macroeconomic climate and yesterday’s market downturn, #Binance recorded a net inflow of US$1.2 billion in the past 24 hours, according to @DefiLlama‘s CEX Transparency metrics.
This marks one of the highest net inflow days of 2024, indicating strong investor…
— Richard Teng (@_RichardTeng) August 6, 2024
Since the new low, Bitcoin has been recovering slowly to around the $55,000 mark around midday (UTC) on August 6. At press time on August 7, Bitcoin is trading at $56,700.
Bitcoin Could Be Back to $60k
As the trading frenzy continues, Bitcoin prices could be back to above $60,000 by the end of the week, notes Anton Toroptsev, the CIS region Marketing Director of the crypto exchange platform Bitget, stating Bitcoin’s next “rebound” could prove as “rapid” as its recent fall.
Toroptsev said that “by the middle of this week,” BTC prices “may return to $58,000.” He added that “by the end of the week,” Bitcoin would be back to $60k, or already trading “above” this key threshold.
What Triggered BTC Decline?
CryptoQuant notes the price of Bitcoin declined sharply in the context of macro headwinds and a sell-off in financial markets. Bitcoin touched $49,000, the lowest level since February 14.
In its weekly research note, analysts at CryptoQuant note that over the last few weeks, some macro developments have impacted market sentiment negatively: higher interest rates in Japan, worst-than-expected unemployment data in the U.S. as well as the turmoil in the Middle East and the U.K. riots.
The factors have seen market sentiment switch with traders in the crypto futures markets aggressively closing long positions and sellers dominating.
Robinhood Halts Overnight Trading
Not all crypto trading venues were able to handle the trading frenzy during the sell-off. Brokerage firm Robinhood announced a temporary suspension of its overnight trading services due to issues with its execution venue.
In a recent post on X, the company cited problems with Blue Ocean ATS, the third-party firm that handles round-the-clock trading for Robinhood, as the reason behind the decision.
