This month, Bitcoin may write a new chapter in its history, approaching the $109,000 mark. However, alongside this bullish momentum, new issues emerge including demand deficits and manipulations.
Market Manipulations in Bitcoin
Recent events highlighted the intensity of ongoing manipulations in the Bitcoin market. Last weekend, a trading bot characterized as 'predatory' triggered a sharp rise, temporarily pushing the BTC/USD pair towards its highest weekly close above $109,000. This manipulation was enough to liquidate a $12 million short position before the market corrected its gains. Analyst Skew commented, 'Games are clearly underway here, but we're watching the development closely.'
Record Monthly and Quarterly Closings
June may well go down in Bitcoin history. Despite strong volatility fueled by macroeconomic news and market manipulations, the month is set to finish in the green, according to CoinGlass data. The second quarter shows an impressive increase of 29.45%, positioning this period among the strongest of the year for BTC. To establish a record monthly close, Bitcoin simply needs to stay above $104,630, which remains a viable target if the bullish momentum holds.
Demand Deficit Weakens Bullish Trend
However, behind the flattering figures lies a worrying signal: demand is no longer keeping pace with supply. According to a recent analysis by CryptoQuant, the Bitcoin market is suffering from a 'critical demand deficit.' Long-term holders are reacting, activating dormant holdings, while miners are massively taking profits. This situation leads to the volume of BTC put into circulation exceeding that absorbed by new buyers, considered bearish. CryptoQuant's 30-day apparent demand indicator has returned to negative territory, the first time since April when Bitcoin was trading under $75,000.
Thus, despite the current bullish dynamics and potential records, the Bitcoin market shows alarming signs that may indicate a possible reversal. Considering the actions of major players and the macroeconomic environment, caution remains relevant.
