Bitcoin price was attempting to retest and move above the important resistance point at $60,000 on Thursday as the crypto fear and greed index retreated. BTC was trading at $59,000 even as American equities continued their comeback.
Bitcoin lags Dow Jones and other indices
The Dow Jones rose by over 400 points while the Nasdaq 100 and S&P 500 rose by over 1% during the session. At the same time, the dollar index rose by over 0.50% after the US released encouraging economic data.
The numbers revealed that the headline and core retail sales rose by 1.0% and 0.4% in June, higher than the expected increase of 0.4% and 0.1%. These numbers mean that the economy is doing well since consumer spending is the biggest part of the American economy.
Another report showed that the number of initial jobless claims dropped for the second consecutive week. They rose by 227k, lower than the median estimate of 236,000.
More data showed that the import and export price index rose in July. Therefore, there are signs that the rising fear of recession are overblown. While this is a good thing, it also means that the Federal Reserve will deliver just a 0.25% interest rate cut in September.
Bitcoin’s consolidation happened even after Senator Chuck Schumer advocated for a crypto regulation law and after 13F filings by hedge funds and other companies showed that many had invested in spot ETFs. For example, Goldman Sachs owns over $400 million worth of Bitcoin while companies like Morgan Stanley and Nomura have made purchases too.
Additionally, there are signs that some companies are embracing the MicroStrategy business model of borrowing in dollars to invest in Bitcoin. Marathon Digital, a leading crypto miner, has accumulated over 25,000 coins in the past few months.
BlackCardCoin, Mog Coin, and Helium sinks
Most cryptocurrencies were in the deep red on Thursday. BlackCardCoin, which surged on Wednesday, dropped after it unveiled its much-hyped partnership.
The company partnered with Mobilum, a firm that bridges traditional finance with the blockchain industry. Some analysts were expecting it to integrate with either Visa or Mastercard. The ongoing drop is mostly because investors are now selling the news.
Mog Coin price also dropped by over 13%, making it one of the worst-performing meme coins in the market. It has slumped by more than 51% from its highest level this year. The other top laggards were coins like Nexera, DogWifHat (WIF), Helium, Brett, and Celestia.
Some analysts believe that Bitcoin and these coins will bounce back. In an X post, one of the most followed analyst noted that the coin was merely in a consolidation phase and that it would ultimately jump and retest its all-time high.
