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▲ Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Cryptocurrency decline/AI generated image
The cryptocurrency market has once again turned sharply downward, and the first signal of this cycle, where Bitcoin (Bitcoin, BTC) loss supply has surpassed profit supply, is shaking investor sentiment.
According to financial media outlet Benzinga on July 1 (local time), Bitcoin, Ethereum (Ethereum, ETH), XRP (XRP), and Dogecoin (Dogecoin, DOGE) fell together amid continued extreme fear. Bitcoin failed to maintain its rebound from the previous day, falling to the $58,000 level, and Ethereum retreated from around $1,600.
As of 9:10 PM ET, Bitcoin was down 2.52% at $58,223.1, and Ethereum was down 1.54% at $1,566.3. XRP fell 1.43% to $1.03, Solana (Solana, SOL) dropped 1.34% to $73.2, and Dogecoin declined 1.38% to $0.07144.
According to Coinglass data, approximately $250 million worth of positions were liquidated in the cryptocurrency market in the past 24 hours. Long position liquidations, betting on a rise, amounted to $183 million. Bitcoin open interest increased by 1.52% during the same period, and the combination of price decline and increased open interest was presented as a trend indicating the potential inflow of new short positions.
The Crypto Fear & Greed Index indicated that the extreme fear phase continues. The total global cryptocurrency market cap was $2.07 trillion, with no significant change in 24 hours. Crypto-related stocks also showed weakness, with Strategy (Strategy, MSTR) and BitMine Immersion Technologies (BitMine Immersion Technologies, BMNR) closing down 6.2% and 3.55% respectively.
Crypto analyst Ali Martinez stated that Bitcoin's loss supply has surpassed its profit supply for the first time in this cycle. Martinez explained that similar on-chain crossover signals have coincided with major cycle bottoms in 2011, 2014, 2018, and 2020. He said, “Historical data shows that such crossover periods can last from several weeks to several months before a major trend reversal, but it confirms that Bitcoin is currently trading within a high-conviction accumulation zone.”
On-chain analytics firm CryptoQuant analyzed that the Ethereum Coinbase Premium Index has fallen into negative territory, indicating increased selling pressure from US institutional investors. Binance (Binance) funding rates also turned negative, suggesting that leveraged investors are leaning bearish. CryptoQuant stated, “A combination of deeply negative funding rates and Coinbase discount often characterizes a wall of worry,” adding, “In such a subdued speculative sentiment, if staking absorbs organic supply, it creates a vulnerable environment for short-position investors.”
[Article Key Summary]
-Bitcoin, Ethereum, XRP, and Dogecoin all fell together amid extreme fear.
-Approximately $250 million worth of positions were liquidated in the cryptocurrency market in the past 24 hours, with long position liquidations amounting to $183 million.
-Ali Martinez presented the trend of Bitcoin's loss supply surpassing profit supply as an on-chain signal coinciding with past major cycle bottoms.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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