This week, the cryptocurrency market has seen mixed performance, with Bitcoin maintaining its position above $30,000. As of writing, the largest cryptocurrency is trading at $30,580, while its trading volume has decreased by 3.7% to $1.345 billion compared to the previous day.
The primary challenge Bitcoin faces is sustaining its price above the critical psychological level of $30,000. On the downside, BTC finds support at $29,500. With Bitcoin's market dominance exceeding 50%, it is likely to continue consolidating around this level. However, a breakout above the $32,400 resistance could propel it toward $35,000.
Meanwhile, Ethereum (ETH) is trading at approximately $1,880. The total cryptocurrency market capitalization stands at $1.227 trillion. Assets like Near Protocol, Stacks, Kaspa, Kava, BitDAO, Algorand, ApeCoin, and Bitget have lost between 7% and 24% of their value over the past three hours.
After ten days of positive price action, the cryptocurrency market has entered a quieter phase. During this period, Bitcoin surged to a yearly high but has since entered a consolidation stage. As Bitcoin takes a breather, many altcoins are seizing the opportunity to rally.
Bitcoin remains the primary focus of the cryptocurrency market, fueled by BlackRock's application for a spot Bitcoin ETF. Despite the SEC's repeated rejections of similar funds, BlackRock's involvement could pave the way for approval. Other ETF issuers, including Invesco, WisdomTree, and Valkyrie Investments, have also filed applications for their own spot Bitcoin funds.
Katie Talati, Head of Research at Arca, noted that SEC approval might take time due to the regulator's strong anti-crypto stance. However, the involvement of traditional financial giants like BlackRock increases the pressure for approval. Circle CEO Jeremy Allaire anticipates a new wave of Bitcoin ETF approvals as regulatory concerns are addressed through improved market surveillance.
In early June, the SEC sued Binance and Coinbase, alleging they operated as unregistered exchanges and listed unregistered securities.
Bitcoin Follows a Predictable Pattern
Markus Thielen, Head of Research at Matrixport, highlights that June has historically been a strong month for crypto assets, with returns of 20%, 27%, and 24% over the past three years. Thielen predicts a 20-30% price surge for Bitcoin in the next 10 days, potentially reaching $36,000 by July.
He notes that Bitcoin's strongest rallies occur during U.S. trading hours, indicating institutional buying. Contrary to claims that "crypto is dead in the U.S.," Thielen argues that American institutions are actively participating.
In Hong Kong, HSBC now allows clients to trade Bitcoin and Ethereum futures ETFs, marking a significant step toward mainstream adoption. Meanwhile, China has re-entered the crypto space with its Web3 Innovation and Development White Paper, signaling a shift in its stance toward blockchain technology.
Bitcoin Hard Forks Outperform
While Bitcoin dominates headlines, its hard forks—BCH, BSV, and BTG—have staged impressive rallies. Over the past seven days, BCH surged 106.4%, BSV gained 48.3%, and BTG rose 20.7%, outperforming BTC's 14.2% increase.
- BCH: Trading at $225, up 16% in 24 hours, with a market cap of $4.25 billion.
- BSV: Priced at $37.8, up 3.6%, with a market cap of $706 million.
- BTG: Valued at $14.15, up 6%, with a market cap of $241.68 million.
BCH's trading volume skyrocketed by 235% to $987.6 million, while its open interest (OI) surged to $400.86 million, levels last seen in May 2021. This suggests heightened institutional interest.
Despite their rallies, these hard forks remain far from their all-time highs (ATHs). Bitcoin is down 56% from its ATH of $69,000, while BCH, BSV, and BTG are down 94.2%, 92.5%, and 96.98%, respectively.
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What’s Next for Bitcoin Hard Forks?
- BCH: Forked in 2017 to address scalability, BCH aims to be a payment network but struggles with adoption.
- BSV: Emerged in 2018, advocating for larger blocks and stable protocol.
- BTG: Created to democratize mining but has faced 51% attacks.
While these hard forks have recently gained attention, their long-term prospects remain uncertain. Retail interest may be driven by their low prices or the "Bitcoin" name, but sustained growth requires broader adoption and utility.
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FAQs
Q: Why are Bitcoin hard forks rising?
A: Increased institutional interest and low prices have fueled rallies in BCH, BSV, and BTG.
Q: Can Bitcoin hard forks surpass Bitcoin?
A: Unlikely. Bitcoin's dominance and adoption far exceed its hard forks.
Q: Is now a good time to invest in BCH?
A: While short-term gains are possible, long-term viability depends on network activity and adoption.
Q: What risks do Bitcoin hard forks face?
A: Low liquidity, security vulnerabilities, and regulatory scrutiny pose significant risks.
Q: How does EDX Markets impact BCH?
A: Listing on EDX has boosted BCH's credibility and trading volume.
Q: Will BSV recover its ATH?
A: Given its 92.5% drop from ATH, a full recovery seems challenging without major adoption.
Disclaimer: Cryptocurrency investments are volatile. Conduct thorough research before investing.