Why Did Crypto Increase Today In Markets

After dipping early Tuesday during U.S. trading hours, bitcoin, ether and most major cryptos gained momentum and were in the green by the close of equity markets.

Bitcoin (BTC) was recently changing hands at about $20,600, up more than 4% over the past 24 hours. The largest cryptocurrency by market capitalization has been struggling to stay above the $20,000 threshold for the past month and dropped almost 60% during this year's recently closed second quarter, its worst quarter since 2011.

Most altcoins climbed on Tuesday. Ether (ETH), the second-largest cryptocurrency after bitcoin, was recently changing hands at $1,160, up over 3% in the last 24 hours. Polygon’s token was among other altcoins' biggest winners, rising 8.4%.

The cryptocurrency Fear & Greed Index rose by 5 points to 19 on Tuesday to hit its highest level since May 7, but remained in “extreme fear” territory.

Market analyst Alex Kuptsikevich attributed any current growth in the crypto market to retail buyers intending to “buy when there is blood on the streets” and said that it is too early to expect a recovery.

“At this stage, when we see only timid attempts

It would be too early to talk about confirmation of a broken downtrend,” Kuptsikevich said.

Such pessimism comes amid a recent backdrop of industry calamities, including the implosion of crypto lending services provider Celsius's decision to halt withdrawals and the bankruptcy filing of crypto hedge fund Three Arrows Capital. Market observers are warily eyeing the fate of bitcoin miners, which have been liquidating their crypto holdings in recent weeks. Some may soon face margin calls.

According to Glassnode, the total bitcoin balance held by miners has retreated to December 2021 levels. An IT service management company, revealed Tuesday it sold over 7,000 bitcoin in June to raise funds for payments and investments. The tokens sold for an average price of $23,000 and raised about $167 million.

●Bitcoin (BTC): $20,527 +5.5%

●Ether (ETH): $1,157 +6.5%

●S&P 500 daily close: 3,831.39 +0.2%

●Gold: $1,768 per troy ounce

●Ten-year Treasury yield daily close: 2.81% −0.08

Major Crypto Inflows From Short-Bitcoin,

crypto funds saw inflows totaling $64 million in the seven days through July 1. The majority of inflows came from short bitcoin investment products ($51 million), while bitcoin only saw about $600,000 million in inflows.

The short came after Short Bitcoin Strategy’s launched its bitcoin exchange-traded fund (ETF), which was designed to profit from bitcoin price declines. The fund became the second-largest bitcoin-focused ETF in the U.S. market after just a few trading days.

Ethereum saw its second week of inflows totaling $5 million, breaking the second-largest cryptocurrency’s 11-week streak of outflows. Many other altcoins saw SOL ($1 million), ADA ($600,000) and DOT ($700,000).

Regionally, Brazil, Canada, Germany and Switzerland all saw minor inflows into long investment products totaling $20 million.

“This highlights investors are adding to long positions at current prices, with the inflows into short-bitcoin possibly due to first-time accessibility in the U.S. rather than renewed negative sentiment,” the report said.

Liquidity protocol had more than $8.78 million worth of cryptocurrencies stolen from its platform in an attack over the weekend. Finance developers said that they are coordinating with “relevant organizations” to gather more information.

Non-fungible token (NFT) trading platforms should be made subject to European Union anti-money laundering (AML) laws, members of the European Parliament said Monday. The proposed amendments to the legislation would cover self-hosted wallets and DeFi apps.

The firm building and Kusama blockchain ecosystems has added three senior executives to round out its leadership team.