Market Overview
The cryptocurrency market cap has declined 1% in the past 24 hours, though it's shown cautious recovery from Wednesday's $2.43 trillion low to $2.51 trillion. After over a month of "extreme greed," the Crypto Fear & Greed Index has retreated to 71 ("greed"). Technically, this downward movement suggests potential for further declines.
Key Developments:
- Crypto assets faced sell-offs alongside other risk-sensitive investments
- U.S. Treasury yields reached multi-month highs
- Market expectations for Fed rate cuts diminished following strong economic data
- All eyes on Friday's non-farm payroll report for confirmation
Bitcoin Price Action
BTC briefly fell below $65,000 during Tuesday night and Wednesday morning before finding buyer support. This level represents:
- A psychologically significant round number for retail traders
- The 76.4% Fibonacci retracement level from January's low
Current price hovers around $66,300 as European trading begins. Critical support levels to watch:
- Strong support: $63,000
- Immediate resistance: $67,500
Market News Digest
Liquidation Events
- $456M in futures liquidations occurred (Coinglass data)
- $355M came from long positions
- Funding rates dropped from 77% to lows (QCP Asia report)
Mining Sector Updates
- March saw record $2B in Bitcoin miner revenue (The Block)
- 15-20% of network hash rate may become unprofitable post-halving (Galaxy Digital)
Regulatory Landscape
- WSJ describes Tether as "indispensable" for sanction evasion
- U.S. Treasury pushing for crypto transaction monitoring legislation
Macroeconomic Context
👉 How changing interest rates impact crypto markets
- Dollar Index (DXY) dropped ~11% in first half 2025
- Gold prices reached $3,358/oz amid fiscal concerns
- July historically strong for U.S. equities (avg. 3.35% S&P 500 returns)
Market Outlook
Key factors influencing near-term direction:
- Non-farm payroll data release
- Potential passage of U.S. tax legislation
- Bitcoin's ability to hold critical support levels
FAQ Section
Q: Is this a good time to buy Bitcoin?
A: While technicals suggest caution, the $63,000 support level could present a buying opportunity for long-term holders if maintained.
Q: What's driving the dollar's weakness?
A: Combination of fiscal concerns, changing Fed expectations, and capital outflows from U.S. assets.
Q: How significant are the mining revenue figures?
A: Record revenues indicate strong network activity, but post-halving profitability challenges may pressure smaller miners.
👉 Understanding crypto market cycles
Note: All market data current as of July 2, 2025. Always conduct your own research before making investment decisions.