Bitcoin faces pressure after large sell

Bitcoin retreated sharply on Friday, marking a reversal from last week’s record high above USD 123,000.

The market was weighed by substantial transfers from large holder Galaxy Digital, which moved USD 1.5 billion in bitcoins to exchanges in a short period of time.

The large sell could fuel concerns over more sell-side pressure as leveraged traders get squeezed. Other cryptocurrencies followed suit, recording losses.

At the same time, markets could remain cautious as interest rate cut expectations continue to recede. The stronger-than-expected job market data in the US could support a cautious Federal Reserve monetary policy, affecting risk appetite. In this regard, investors could continue to monitor new economic data.

However, bitcoin could find support as US ETFs see a return of inflows after three days of outflows. Ethereum ETFs continued to see consistent inflows as the asset gained more interest from investors.

Focus could also turn to the upcoming release of the White House’s crypto policy report, due on July 30. Mandated by an executive order in January, the document is expected to provide details on federally held Bitcoin reserves and outline a comprehensive regulatory approach to digital assets. A framework that provides regulatory clarity could support sentiment.

Meanwhile, corporate participation in Bitcoin markets is expanding. Strategy announced a significant increase in its preferred stock offering, from USD 500 million to USD 2.8 billion, with proceeds allocated to further augment its Bitcoin holdings. The move reflects growing interest among firms in adopting Bitcoin as a treasury asset.