Bitcoin Drops 1.73% After Surpassing $108,000 Mark

On July 4, Bitcoin (BTC) experienced a notable surge, briefly crossing the $108,000 mark before facing selling pressure. This resulted in a 24-hour decline of 1.73%, bringing the price down to approximately $108,851. Despite this decline, Bitcoin remained marginally up over the past 24 hours, indicating a resilient market sentiment.

The recent rally in Bitcoin's price was driven by a combination of factors, including increased market liquidity and a positive outlook on the US economy. The US House passed a landmark budget bill on June 3, which, although it did not include specific provisions for the crypto industry, is expected to boost market liquidity. This increased liquidity could act as a catalyst for further growth in the crypto market.

However, the lack of spot demand has limited Bitcoin's ability to push to a new all-time high. Market data indicates that spot buying on exchanges remained negative even as BTC attempted a breakout, suggesting a lack of momentum. Analysts believe that without real demand, breakouts run on fumes, and derivative-driven pumps could lead to a pullback or consolidation if prices rise without spot market support.

The recent price movements in Bitcoin reflect a broader trend of volatility in the crypto market. Despite the impressive rally over the past two days, Bitcoin's ability to sustain its gains has been limited by a lack of buyers. This trend is consistent with historical data, which shows that July is typically one of the quietest months for BTC and crypto, accounting for just 6.1% of the annual volume.

The decline in Bitcoin's price on July 4 was part of a broader market correction, as other major cryptocurrencies also experienced declines. Ethereum (ETH), for example, briefly rose above $2,600 on Thursday but quickly lost momentum, falling to a low of $2,570 before moving to its current level of $2,574. Similarly, Ripple (XRP) is down 0.51%, trading around $2.24, while Solana (SOL) is down 1.13%, trading around $152.

Despite the recent declines, there are signs of bullish sentiment in the market. Dogecoin (DOGE) and Cardano (ADA) have bucked the bearish trend so far, and are marginally up. Chainlink (LINK) and Hedera (HBAR) have registered marginal increases, while Stellar (XLM), Toncoin (TON), Litecoin (LTC), and Polkadot (DOT) have registered notable declines.