Despite all the bad news, bitcoin remained strong this week

The crypto market had another eventful week, but despite the negative news, the bitcoin price held up surprisingly well. Earlier this week, the largest cryptocurrency broke through the $64,000 level, after recovering above $60,000 the previous week.

However, the good mood was quickly overshadowed by another significant sell-off by Strategy, a firm known for its Bitcoin investments. However, investors reacted much calmer this time than during the June sell-off.

Markets were once again uncertain in the middle of the week when the United States and Iran launched military strikes against each other. Due to the increasing geopolitical tension, bitcoin fell back to near $62,000. However, later news emerged that the parties were preparing new negotiations, which improved investor sentiment.

Strategy made its largest ever Bitcoin sale this week, worth $220 million. The “never sell” strategy is no longer valid. The firm sold over 3,500 BTC, which caused an immediate price drop, with bitcoin falling as low as $61,200, but quickly correcting.

After six months of complete silence, one of SpaceX’s well-known Bitcoin wallets has shown signs of life again. The company moved just $88 worth of BTC between two of its own addresses, which may seem like a small amount at first glance. However, the crypto community immediately began to speculate, as SpaceX owns more than 18,700 Bitcoins, and previous similar transactions have often been followed by significant rearrangements.

New services have appeared on major crypto exchanges. Binance is expanding its Binance Earn offering with a new service: BTC Yield is aimed at bitcoin owners who would like to hold their BTC for the long term, but also want to achieve some extra yield in the process. Bitpanda has also officially launched margin trading on its platform.

Trump first shook and then calmed the markets – bitcoin went on a roller coaster ride

The cryptocurrency market has been in a volatile spot this week, as Donald Trump’s sometimes contradictory statements have significantly affected investor sentiment. Earlier this week, Trump said that the ceasefire between the United States and Iran was over, triggering an immediate sell-off. Bitcoin’s price fell by about 2.5% in one day as investors turned to safer assets.

However, the mood quickly turned when Trump later said that Iran might once again be open to a new deal with the United States. Bitcoin gained nearly 1.5% on the news, rising back above $63,000, while US stock markets also turned positive.

Geopolitical uncertainty is also affecting interest rate expectations.

Investors are increasingly seeing a chance that the US central bank, the Federal Reserve, may pursue a tighter monetary policy than previously expected. Current expectations are that the base rate may remain unchanged in July, but the probability of a possible interest rate hike at the September meeting has already increased. Higher interest rates generally have an unfavorable effect on risky assets, including cryptocurrencies.

Could Bitcoin Be Turning? There Are Increasing Signs That It Has Bottomed Out

Bitcoin’s price remains under significant pressure, but more and more analysts believe a turnaround may be approaching. According to Swiss cryptocurrency provider Bitcoin Suisse, several market indicators suggest that the market may have reached the bottom of the cycle and a gradual recovery may begin.

One of the most significant changes has been in the US spot bitcoin ETF market. These funds have been experiencing continuous capital outflows for eight weeks, putting significant selling pressure on bitcoin. However, in recent days they have again recorded net capital inflows, which may indicate that institutional investors have started buying again.

Although there has been another small capital outflow since then, Bitcoin Suisse says the fact that the long negative streak has been broken is an encouraging sign.

The Crypto Fear & Greed Index, which measures investor sentiment, continues to show an extremely pessimistic picture, which has historically often been observed just before major upheavals. Experts say it is still too early to declare a new bull market, but there are increasing signs that bitcoin’s longer-term bottom may have already formed.