- BTC has cooled briefly on July 1 from the inflation of Powell.
- QCP Capital projected a range -bound market, referring to the positioning of the option.
On July 1, Bitcoin [BTC] Short immersed from $ 107k to $ 105k before he then reversed the losses on July 2.
The temporary cooling, however, dragged crypto markets lower, causing a $ 252 million liquidation cascade across the board.
Market data showed that only a few assets had reversed recent losses. BTC rose by 1.23% and back above $ 107k. Solana [SOL] Was also green, but struggled at $ 150, ETH was still red and less than $ 2.5k.
Source: Cryptorank
Sky [SUI] And tron [TRX] threw somewhat with 1.5% and 0.8% in the last 24 hours. In short, the market performance was mixed (red and green).
Marktpundits have linked the short cooling to FED chairman Jerome Powell’s recently hawk Speech on a forum of the European Central Bank (ECB).
What moved crypto -markets?
In his daily market update, crypto research agency Presto Research stated”
“Powell confirmed on an ECB forum that the FED would probably have already started reducing the rates as not for the inflatory impact of recent rates.”
In addition, Powell emphasized that the FED was careful and emphasized a ‘data-dependent approach’ without committing itself with a pre-set timeline for lowering the interest rates.
That said, the current market conformity Leaned to a likely rate reduction in September, which means that a potential strong risk-to-catalyst at the end of Q3.
Moreover, Elon Musk and President Donald Trump renewed their spit while Republicans approved the controversial reconciliation law, called the only big great account (OBBB).
Summary market reactions to updates in the early week, Handelsdesk QCP Capital marked a lateral structure in the short term and noted,
“Option markets show a modest increase in BTC-Risico exhibitions, although implicit volatility remains in the vicinity of lows. Basic and yields continue to reflect a soft native sentiment, with the most positioning now prefer accumulation and accessible activity.”
In the meantime, the Defi segment on a sector -wide performance fell the fastest by -4% average. The subsector was also the slowest to bounce back in the last 24 hours.
Some of the fastest recovery were seen in AI, L2S and Memecoin sectors, with an average of 1-3% pump per VELO facts.
Source: VELO
That said, with mixed performance, Whale outputsAnd potential access -related activity in the short term, BTC could react aggressively to liquidity pools.
Coinglass -data marked $ 105k and $ 103k as important liquidity levels that can be price magnets in the case of a liquidation hunt. At the top of price promotion were $ 108k and $ 109k potential goals.
Source: Coinglass