Bitcoin Drops 2% After Surpassing $123,000

Bitcoin (BTC) experienced a notable decline on Tuesday as traders secured their profits following the cryptocurrency's surge to unprecedented levels. BTC surpassed $123,000 on Monday, reaching an intraday high of $123,097 before settling at $119,714. This decline came after BTC crossed $116,000 on Friday and settled at $116,885. The price momentum waned on Saturday, with a marginal decline, but it rebounded on Sunday, rising 1.72% to settle at $118,624. The price soared to a new all-time high on Monday, surpassing $123,000 and settling at $123,091 before declining to $119,714. BTC is down over 2% during the ongoing session, trading around $117,030.

Analysts believe that BTC’s rally is far from over, with predictions suggesting the price could reach $135,000 before a market correction sets in. Market experts attribute the correction to profit booking, as investors lock in their gains after the price surged past $120,000. Despite the decline, Bitcoin ETFs reported $300 million in inflows, indicating continued investor confidence. Katie Stockton, founder and managing partner of Fairlead Strategies, believes that BTC could push to $135,000 before any substantial correction. Stockton added that stocks like Coinbase and Strategy, which track BTC markets, will also perform well. Other analysts offered similar predictions after BTC broke above $120,000 on Monday, crossing $123,000 on Coinbase before retreating. 10x Research head Markus Thielen stated, “Based on the July 10 breakout signal, which has historically led to an average 20% rally over the following two months, we project Bitcoin could reach $133,000. We expect some near-term consolidation, followed by a push toward $133,000, with our $160,000 year-end target still firmly in sight.”

Michael Saylor’s Strategy has resumed its weekly Bitcoin purchases, acquiring 4,225 BTC for $472.5 million at an average price of $111,827 per coin. The latest purchase takes Strategy’s total Bitcoin holdings to 601,550 BTC, worth over $73 billion at current prices, at an average cost of $71,268 per Bitcoin for a total cost of $42.9 billion. The company holds nearly 3% of Bitcoin’s total supply and is sitting on almost $30 billion of paper gains. Strategy funded its latest acquisition from at-the-money (ATM) sales of its Class A common stock, MSTR, perpetual Strike preferred stock, STRK, perpetual Strife preferred stock, STRF, and perpetual Stride preferred stock, STRD. The company sold 797,008 MSTR shares for $330.9 million. $17.78 billion worth of MSTR shares remain available for issuance and sale as of July 13. The firm also sold 573,976 STRK shares for $71.1 million, and has $20.45 billion worth of STRK shares remaining available for sale and issuance under that program. Strategy also sold 444,005 STRF shares for $55.3 million, and has $1.88 billion remaining. Lastly, it sold 158,278 STRD shares for $15 million, with $4.19 billion available for sale and issuance.

Standard Chartered is allowing its institutional clients to trade Bitcoin (BTC) and Ethereum (ETH) through its UK branch. Financial institutions have reported a substantial jump in demand for crypto products from clients as BTC surges to record levels. The decision allows institutional investors, corporates, and asset managers to conduct spot crypto trading using the bank’s existing platforms. Standard Chartered already offers several crypto products, including trading services via two subsidiary companies. Standard Chartered Chief Executive said in a statement, “As client demand accelerates further, we want to offer clients a route to transact, trade, and manage digital asset risk safely and efficiently within regulatory requirements.”

Bitfinex analysts have said that even retail demand is outpacing supply, with new buyers entering the market buying the cryptocurrency faster than the rate at which miners mine it. The analysts stated in a market report, “Currently, the combined balance of these cohorts is expanding at a rate of approximately 19.3K BTC per month.” The analysts highlighted that the Shrimp (<1 BTC), Crab (1-10 BTC), and Fish (10-100 BTC) holder groups were accumulating Bitcoin and growing their portfolio significantly faster than the monthly issuance rate. “Demand from this segment alone is more than enough to absorb all new supply. This cohort-level accumulation trend supports the broader bullish narrative that new buyers entering the Bitcoin market are price-agnostic buyers and are relentlessly accumulating with limited intervals.”