Cryptocurrency Opinion and Analysis

BTC price slumps to $62K as Bitcoin bulls bet on M2 money supply

2024.08.03 10:13

Bitcoin (BTC) sought to reclaim $62,000 on Aug. 3 as markets inched higher after a fresh liquidation cascade.

BTC price slumps to $62K as Bitcoin bulls bet on M2 money supplyBTC/USD 4-hour chart. Source: TradingView

BTC price tests $60,000 in stocks sell-off

Data from Cointelegraph Markets Pro and TradingView showed a 3% BTC price rebound taking shape after fresh multi-week lows of $60,435 on Bitstamp.

These accompanied a grim day for stocks worldwide, with the Nikkei’s 6% drop setting the scene for more losses on Wall Street. United States employment data, which fell far short of expectations, exacerbated the sense of panic.

Bitcoin itself lost nearly $5,000, giving up several key support lines, including the short-term holder cost basis.

Liquidations mounted as a result, with data from monitoring resource CoinGlass putting the total crypto longs wipeout at $230 million for both Aug. 1 and Aug. 2.

BTC price slumps to $62K as Bitcoin bulls bet on M2 money supplyCrypto liquidations (screenshot). Source: CoinGlass

“The Yields are falling off a cliff in the U.S. markets as the job reports came in astonishingly bad,” Michaël van de Poppe, founder and CEO of trading firm MNTrading, wrote in a reaction on X.

“Slight panic across the board, as the markets are pricing in a substantial recession for the U.S.”

BTC price slumps to $62K as Bitcoin bulls bet on M2 money supplyUS 2-year bond yields chart. Source: Michaël van de Poppe/X

Van de Poppe argued that recent events had likely cemented the likelihood of the Federal Reserve cutting interest rates — a key bullish catalyst for crypto and risk assets — at its next meeting in September.

“One thing is for certain: Rate cuts for September are confirmed,” he concluded.

Trading resource The Kobeissi Letter meanwhile summarized the macroeconomic landscape as full of mixed signals.

BTC price slumps to $62K as Bitcoin bulls bet on M2 money supplySource: The Kobeissi Letter

“Yesterday, the discussion was whether a September rate cut was coming or not. Today, the discussion is whether the rate cut will be 25 basis points of 50 basis points,” part of its latest X coverage explained.

Data from CME Group’s FedWatch Tool put market odds of a smaller 0.25% cut at 78% on the day.

BTC price slumps to $62K as Bitcoin bulls bet on M2 money supplyFed target rate probabilities. Source: CME Group

Global liquidity offers Bitcoin bull case

Bullish perspectives on Bitcoin remained in play despite the market shock.

Related: Bitcoin whale volume from exchanges hits 9-year high as analysts call BTC price bottom

Jeff Ross, founder and managing director of hedge fund Vailshire Partners, suggested that rising global liquidity would buoy BTC price action going forward.

Ross uploaded a chart to X comparing the global M2 money supply to BTC/USD and the latter’s 50-week and 200-week simple moving averages (SMAs).

“A reverse head-and-shoulders forming for bitcoin (on the weekly chart) in the setting of increasing global M2 money supply? Would be uber bullish from a combined TA and liquidity perspective,” part of accompanying commentary read.

BTC price slumps to $62K as Bitcoin bulls bet on M2 money supplyGlobal M2 money supply vs. BTC/USD chart. Source: Jeff Ross/X

Even before the bulk of the comedown, Cointelegraph reported on increasing expectations among traders that Bitcoin would retest the bottom of its long-term trading range.

“Bitcoin Has now been trading in this range for more than 5 months,” popular trader Daan Crypto Trades noted.

“We’ve been seeing lower lows and lower highs as the range has been going on. Key levels remain $59K & $74K for the lows and highs.”

BTC price slumps to $62K as Bitcoin bulls bet on M2 money supplyBTC/USDT chart. Source: Daan Crypto Trades/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 102,056.34 2.95%
ethereum
Ethereum (ETH) $ 3,291.21 0.79%
xrp
XRP (XRP) $ 3.03 3.41%
tether
Tether (USDT) $ 1.00 0.03%
solana
Solana (SOL) $ 230.48 4.05%
bnb
BNB (BNB) $ 675.78 0.52%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.327996 1.37%
cardano
Cardano (ADA) $ 0.941363 2.63%
staked-ether
Lido Staked Ether (STETH) $ 3,284.99 0.71%
tron
TRON (TRX) $ 0.253888 0.66%
chainlink
Chainlink (LINK) $ 24.98 1.53%
avalanche-2
Avalanche (AVAX) $ 34.35 0.28%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,918.54 1.14%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 102,266.40 2.45%
stellar
Stellar (XLM) $ 0.413736 4.02%
sui
Sui (SUI) $ 4.09 2.08%
the-open-network
Toncoin (TON) $ 4.80 0.54%
hedera-hashgraph
Hedera (HBAR) $ 0.304785 4.57%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 0.10%
weth
WETH (WETH) $ 3,293.49 0.89%
polkadot
Polkadot (DOT) $ 6.34 2.85%
litecoin
Litecoin (LTC) $ 127.49 1.71%
hyperliquid
Hyperliquid (HYPE) $ 27.19 1.51%
leo-token
LEO Token (LEO) $ 9.78 0.08%
bitcoin-cash
Bitcoin Cash (BCH) $ 423.23 3.08%
bitget-token
Bitget Token (BGB) $ 6.95 0.14%
uniswap
Uniswap (UNI) $ 11.75 2.40%
usds
USDS (USDS) $ 0.999464 0.14%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,484.83 0.90%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.12%
pepe
Pepe (PEPE) $ 0.000014 5.39%
near
NEAR Protocol (NEAR) $ 4.60 0.71%
mantra-dao
MANTRA (OM) $ 5.29 5.39%
aave
Aave (AAVE) $ 333.66 5.10%
official-trump
Official Trump (TRUMP) $ 24.38 7.46%
ondo-finance
Ondo (ONDO) $ 1.49 5.30%
aptos
Aptos (APT) $ 7.80 1.45%
internet-computer
Internet Computer (ICP) $ 9.28 1.24%
monero
Monero (XMR) $ 235.26 1.25%
mantle
Mantle (MNT) $ 1.24 6.47%
whitebit
WhiteBIT Coin (WBT) $ 28.19 1.17%
ethereum-classic
Ethereum Classic (ETC) $ 26.84 1.64%
vechain
VeChain (VET) $ 0.046317 0.92%
bittensor
Bittensor (TAO) $ 449.18 1.39%
crypto-com-chain
Cronos (CRO) $ 0.129276 1.26%
dai
Dai (DAI) $ 0.999941 0.00%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.406396 2.05%
kaspa
Kaspa (KAS) $ 0.129224 1.80%
okb
OKB (OKB) $ 53.63 4.95%