Crypto Market May See “Relief Rally” as Selling Pressure Eases

After a turbulent June, the crypto market might be poised for a “relief rally,” with signs indicating that selling pressure on exchanges is diminishing.

According to Santiment, a crypto intelligence platform, there is optimism for July following significant trader capitulation in June. In a post on July 2, Santiment noted that negative market sentiment and trader losses suggest that a relief rally could be on the horizon.

June’s Performance and Market Outlook

Bitcoin (BTC) experienced a nearly 7% decline in June, hitting a low of $59,500, according to Cointelegraph Markets Pro. The overall crypto market capitalization dropped by approximately $400 billion from its $2.5 trillion peak, as reported by TradingView.

Analyst Minkyu Woo, a verified author on CryptoQuant, shared similar optimism, stating that sellers appear to be exhausted. Woo observed a decrease in large Tether (USDT) outflows from exchanges since January last year, with a notable reduction in June. This suggests that large-scale selling pressure on exchanges is waning.

Investor Sentiment and Future Projections

Woo mentioned that this decrease in outflows indicates investors are more inclined to hold their assets rather than cashing out, implying a more positive investor sentiment following the Bitcoin halving event. Currently, BTC is trading around $62,950, down 0.4% over the past 24 hours.

Potential Challenges Ahead

Despite the positive outlook, there are some potential headwinds for Bitcoin and the broader crypto market. The long-bankrupt exchange Mt. Gox is set to unlock $9 billion worth of BTC, which could lead to selling pressure as creditors may look to cash out their crypto holdings that have been locked up for a decade.