Bitcoin (BTC) experienced a period of consolidation near $31,000 on July 14th following a short squeeze that led to new yearly highs. After seeing rapid gains the previous day, BTC price movements began to solidify support. The market reacted instantly to news that a United States judge had declared altcoin XRP (XRP) not a security, which was seen as a blow to the Securities and Exchange Commission (SEC). XRP/USD immediately spiked by over 100%, reaching nearly $1 before settling around $0.80. This was the first time these price levels had been reached since April 2022.
While Bitcoin’s reaction was more muted, it still resulted in the liquidation of $50 million worth of short positions, according to CoinGlass data. Despite the possibility of bears gaining an advantage around the weekly options expiry, traders remained cautiously optimistic on that day. Popular trader Jelle noted that Bitcoin had failed to break out overnight and could be falling back into its previous range. However, he expressed hope that a push could lead to exciting developments over the weekend. Another trader, Crypto Tony, expressed frustration at the lack of a clear breakout from Bitcoin’s long-established trading range and stated the need for a solid flip before entering into any positions.
As XRP made a comeback, Bitcoin’s market cap dominance experienced a drop. Bitcoin, which previously constituted almost 52% of the total market cap, fell below 50% overnight, reaching near one-month lows. Traders had anticipated Bitcoin’s dominance to cool down and allow altcoin markets to gain momentum in a broader crypto bull market. They believed that the rise of altcoins was imminent and that patience would pay off.
Traders and analysts shared their views on social media, expressing their anticipation for a mega-run of altcoins. They emphasized the need for patience and highlighted that good things come to those who wait. The altcoin boom was seen as a significant opportunity for investors, and they predicted that altcoins would make substantial gains in the near future.
In conclusion, Bitcoin consolidated near $31,000 following a short squeeze that led to new yearly highs. The market reacted to news that XRP was not considered a security, resulting in a spike in XRP price and a drop in Bitcoin’s market cap dominance. Traders were cautiously optimistic and expressed their hope for a breakout and an upcoming bull market for altcoins. Patience was emphasized as a key strategy in taking advantage of the potential gains in the altcoin market.