Cryptocurrency Market Partially Recovers from Worst Month
The cryptocurrency market has partially recovered from its worst month of the year in June, as Bitcoin and Ethereum both ended July in the green. According to CoinGlass, Bitcoin rose 7.36% in July, marking only its tenth positive close in history.
Ethereum also saw a significant increase, rising 18.5% for the month, with only five previous instances of closing in the green zone. However, despite this rebound, market sentiment remains subdued, with the Fear and Greed Index standing at 33 points, indicating fear among investors.
The recovery is attributed to several macroeconomic and fundamental factors, including the US Fed's decision to keep benchmark interest rates unchanged, slowing inflation data, and increased net inflows into US spot Bitcoin and Ethereum ETFs. However, analysts remain cautious about a full-fledged market recovery, with some predicting continued volatility.
Strategy, which reported a loss of over $8.3 billion in Q2, increased its reserves by buying an additional 85,296 BTC during the quarter. Meanwhile, Glassnode experts noted a bitcoin consolidation phase after the price rebound, while Santiment recorded active buying by large holders.