CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Bitcoin down 5% after 10-day rally

By Andrei Chirileasa

09:17, 2 August 2021

Bitcoin trading
Bitcoin trading – Photo: Shutterstock.com

Bitcoin (BTC) dipped below $40,000 and was trading down over 5% in the last 24 hours as of Monday morning (9:30 UTC+1). This price correction comes after the leading cryptocurrency’s longest rally in years, as bitcoin closed in the green for ten consecutive days.

Bitcoin had gained over 40% since 20 July, when its price held above the $29,000 support level, and briefly climbed above $42,000 over the weekend.

The recent price evolution has given bitcoin holders a boost of confidence and the Crypto Fear & Greed Index went out of the 'Fear' zone for the first time since mid-May, according to Bybt.com data.

Positive evolutions throughout the market

As usual, the sustained bitcoin rally has reverberated throughout the crypto market and pushed up the prices of most other crypto coins.

Ethereum (ETH) saw its price increase by 50% from its 20 July low to over $2,600. Binance coin (BNB) and Cardano (ADA) both gained approximately 30%.

The total cryptocurrency market capitalisation stood at over $1.6trn on Monday, 2 August, up from under $1.2trn on 20 July, which stands for an overall market increase of about a third, based on Coinmarketcap.com data.

ETH/USD

3,136.70 Price
-4.370% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

BTC/USD

86,628.30 Price
-1.870% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

DOGE/USD

0.36 Price
-3.470% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

SOL/USD

204.28 Price
-4.320% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 2.2652

Still, the capitalisation is far from the peak of over $2.5trn touched in the first half of May, and bitcoin’s price is about 38% below the all-time record $64,000 that it reached in April this year.

What is your sentiment on BTC/USD?

86628.30
Bullish
or
Bearish
Vote to see Traders sentiment!

Regulatory pressure

Last week’s crypto rally came against a rather negative background, as US regulators have mounted their pressure on cryptocurrencies.

The most important initiative in this sense is a bipartisan draft bill by the US Senate, which aims to partly finance about $1trn worth of infrastructure investments with a new tax on crypto transactions, according to Coindesk.com.

“The incredible winning streak comes at a very strange time when the FUD is thick, especially from the US government who've turned increasingly negative on the crypto industry over the last few weeks,” Mati Greenspan, founder and CEO of financial advisory firm Quantum Economics, wrote in his latest newsletter.

In an Op-Ed in the Financial Times, former PIMCO CEO Mohamed El-Erian argues in favour of a more open approach by western governments to crypto and its potential to transform finance, economy and society at large, in contrast to China’s forceful top-down vision.

Trade Bitcoin to US Dollar - BTC/USD CFD

1m
5m
15m
30m
1H
4H
1D
1W

Read more: El Salvador prepares to make bitcoin legal tender – why?

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading