A New Month Brings a Drop in the Bitcoin Rate

Timothy St. John•Thursday, July 1, 2021•2 min read

Bitcoin is off to a poor start this month, down 2.89% for the day so far. The cryptocurrency was seeing gains throughout much of the week, but it did not stick. From about 10 PM GMT last night, BTC/USD has continued to drop, falling from $34,894 down to its current $33,541.

BTC/USD

Investors had hoped Bitcoin would move past the $40,000 resistance with its upward motion over the past few days, but that wasn’t the case. Since reaching a low of about $31,000 on June 26^th, Bitcoin has been on the mend. It went up $2,000 in one day and then continued that trend, earning almost $2,000 each consecutive day. BTC/USD peaked at $36,397 on Tuesday before starting to fall.

The last time Bitcoin hit the $40,000 mark was on June 15^th. There’s still hope that it will manage to move past the $50,000 resistance level within the next month or so.

Bitcoin experienced a historic bearish period in May of this year, and it has lost $1.2 trillion since then. Despite these kinds of major losses, the cryptocurrency market is very healthy. There is tons of activity, with investors buying up not just Bitcoin in large amounts, but also investing in Dogecoin, Litecoin, XRP, Ethereum, and many more.

What’s Hurting Bitcoin?

What we’re seeing is nothing new for the market, as it’s known for its instability. It’s particularly volatile right now, wavering due to a fragile balance between economic factors and legal ones. There’s legislative pressure coming from a few countries, and this is hindering not just Bitcoin’s upward movement but many other cryptos as well. Bitcoin is definitely taking the brunt of the legal action, but a number of countries are finalizing and preparing legislation that can affect cryptocurrency of all kinds.

The biggest economic factor affecting cryptocurrency right now is the reopening of countries. Canada is taking its time reopening its borders, pushing back the initial announced date for border reopening to July 22^nd, but then only to vaccinated travelers.

A large percentage of U.S. states have opened back most of their businesses, but many states are still limiting citizens and tourism in different ways.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.