Overview

Bitcoin witnessed a substantial decline on July 4th, slipping below the critical $60,000 threshold, leading to a ripple effect on altcoins. Expert analysis indicates a pessimistic forecast for Bitcoin's future, potentially signaling further price decreases.

Bitcoin's Plummet

The plunge in Bitcoin's value on July 4th, dropping below $60,000, significantly shook the market.

This downturn reverberated across the altcoin sector, resulting in many altcoins experiencing significant price plunges.

Root Cause of Bitcoin's Decline

Speculatively, a contributing factor to this decline could be attributed to insights from Bloomberg ETF analyst, James Seyffart.

Seyffart theorized that the US Securities and Exchange Commission (SEC) might not greenlight a spot Ethereum ETF by the anticipated launch dates.

Expressing skepticism towards the expected launch timeline, Seyffart highlighted the SEC's cautious approach towards making a decision.

Impact on Altcoins

In the aftermath of Bitcoin's descent, altcoins like Ethereum, Solana, BNB, XRP, and Dogecoin also bore the brunt, witnessing substantial price declines.

According to CoinMarketCap data, these altcoins faced price reductions ranging from 4.8% to 10% within a mere 24-hour span.

The devaluation of Bitcoin has instilled a sense of unease in the market, as evidenced by a 3.5% drop in Bitcoin's open interest.

Bitcoin's Price Analysis

Expert evaluations present a bearish projection for Bitcoin's trajectory.

Should Bitcoin post a daily candle closure below the 200 EMA and the $57,700 level, a further price slide of 8% to $53,000 could ensue.

In such a scenario, approximately $1 billion worth of long positions could face liquidation, as per Coinglass data.