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Bitcoin Drops Below $7,000 as Market Struggles

Bitcoin's supposed bull market continues to struggle.

BTC price analysis July 10

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Bitcoin broke below $7,000, dropping over 3% in the last 8 hours. The move proceeds a drop three weeks ago that had BTC touch $6,500⁠—does the market have more legs down?

Bitcoin lost 3.4% of its value in 8 hours, dropping from $7,092 to $6,852 on Coinbase. The dip was accompanied by a substantial increase in volume, with 24-hour volume up 9.7%—at $19.2 billion⁠—compared to its 7-day average, according to CoinMarketCap.

BTC/USD on TradingView

Within the last 24-hours, $44.5 million in long positions and $2.8 million in short positions were liquidated on BitMEX, according to Datamish. That said, longs on Bitfinex saw a surge, with total BTC long contracts growing to 44,000 BTC in notional value. Additionally, annual interest rates for borrowed BTC for longs on Bitfinex jumped from 10% to 13%—further indicating increased long interest.

Bitfinex BTC Total Longs by Datamish
Bitfinex BTC Total Longs by Datamish

Total market capitalization dropped from $194 billion to approximately $188 billion, a 3.1% loss felt across the entire crypto industry.

Even though Bitcoin endured a drop, its dominance still inched up, increasing from 66.44% to 66.88%. The change indicates altcoins were hit harder than Bitcoin, on average.

Despite the bloodbath, Horizen (+15.5%), Waves (+10%), and Bytecoin (+9.7%) still posted strong gains. Kyber Network (+3.4%) and TomoChain (+2.3%) also saw modest increases.

Meanwhile, several privacy coins were devastated by the drop. Decred (-11.6%), Zcash (-10.5%), and Verge (-9.5%) lost considerable value. Cosmos (-9.7%) also suffered a notable loss.

At the moment, the majority of Bitcoin addresses would still post unrealized gains from purchase price. The largest segment of investors purchased their BTC at a price between $950 and $4,400.

In the Money by IntoTheBlock
In/Out the Money by IntoTheBlock

As shown by data from IntoTheBlock, 54.3% of addresses are still “in the money.” Coin Metrics affirms this insight, with the realized price per Bitcoin (the average price addresses paid for their coins) declining to $5,600.

Realized Price per Bitcoin by Coin Metrics
Realized Price per Bitcoin by Coin Metrics

That said, the realized price per coin has continued to drop, indicating that more addresses are selling their coins at a loss. Nonetheless, the average address is still up 23%.

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