After a bullish Monday led by Bitcoin (BTC), the total cryptocurrency market cap slipped more than 2 percent to hover about $2.5 trillion on Tuesday. Bitcoin price dropped nearly 5 percent in the last 24 hours to trade at about $66,392 on Tuesday during the early trading session.
As a result, more than $174 million, mostly involving long traders, was liquidated from the crypto derivatives market in the past 24 hours.
Bitcoin Whales Make Notable Moves
Amid increased concerns of potential crypto correction in August, as depicted by the drop of Bitcoin’s fear and greed index, more whale investors have been making notable changes. For instance, the US spot Bitcoin ETFs registered a net cash outflow of about $81.49 million on Monday. Led by Grayscale’s GBTC, none of the spot Bitcoin ETF issuers registered a net cash inflow on Monday.
Meanwhile, the US government transferred nearly 30,000 Bitcoins, worth about $2 billion, to two different addresses on Monday. The move follows Donald Trump’s pledge over the weekend to protect the Bitcoin and crypto industry, including never selling the country’s BTC holdings.
Political Suicide?
Over the past years, the Biden administration has received heavy criticism for fighting against the crypto industry. The recent transfer of the US Bitcoin holding has sparked possible selling pressure similar to the one from the German government’s $2 billion sales.
With Biden out of the presidential race, Democratic presidential candidate Kamala Harris is reportedly considering Michigan Senator Gary Peters as a running mate. Notably, Peters has been an anti-crypto lawmaker who co-sponsored the Digital Asset Money Laundering Act in 2023.
With the crypto-affiliated voters in the US believed to be more than 50 million, some experts say the Democrats are not trending carefully on the matter.
What Next?
The crypto industry led by Bitcoin will continue to experience more volatility in the coming days amid the FOMC statements on August 1. From a technical standpoint, Bitcoin price has formed a possible reversal pattern backed by a daily double top coupled with a bearish divergence on the Relative Strength Index (RSI).
If the crypto bulls lose control ahead, Bitcoin price could drop as much as $60k in the coming weeks before rebounding to a new all-time high.
