Recently, virtual currencies, led by Bitcoin, have entered a relatively complex stage. Moments ago, virtual currencies fell across the board. The price of Bitcoin fell to around $60,000, while Ethereum struggled to rise and retreated to around $3,300.

In the past, virtual currencies have also experienced a period of madness. At that time, many investors attributed its rise to the increasing demand for safe haven and the booming development of computing power. So, is this plunge caused by the ebb of safe-haven sentiment, the extinguishing of computing power, or other reasons? Analysts believe it may be related to supply, as there will be five new cryptocurrencies available for investment in July.

In addition, Binance, the world's largest cryptocurrency exchange, will halt trading services for six currency pairs: BTC/AEUR, ETH/AEUR, AI/TUSD, CHR/BNB, GAS/FDUSD, and LQTY/FDUSD, effective from July 5. The company did not disclose the specific reasons for the delistings, which may be related to liquidity.

Surprising Binance Action

This morning, the virtual currency market plummeted across the board, with most currencies in a loss state. According to CoinGecko, the global cryptocurrency market is currently valued at about $2.35 trillion, down 3.5% from the previous day. According to CryptoPotato data, the price of Bitcoin (BTC) retreated to the $60,000 level, while Ethereum (ETH) fell to about $3,300. Meanwhile, 112,480 people were liquidated in the past 24 hours, with a total liquidation amount of $309 million.

So what happened exactly? Analysts believe the direct reason may be related to Binance. The world's largest cryptocurrency exchange, Binance, will halt trading services for six currency pairs: BTC/AEUR, ETH/AEUR, AI/TUSD, CHR/BNB, GAS/FDUSD, and LQTY/FDUSD, effective from July 5. The company did not disclose the specific reasons for the delistings but only reminded that it would periodically review all listed spot trading pairs and delete some trading pairs with poor liquidity or other factors.

Meanwhile, Binance recently added some new trading pairs on its platform. WIF/BRL, ZK/USDC, and ZRO/USDC have been added to the Binance Spot. It is worth noting that the service is not available to all customers. Currently, users residing in the following countries or regions will be unable to trade the above-mentioned spot trading pairs: Canada, Cuba, the Crimean region, Iran, the Netherlands, North Korea, Syria, the United States and its territories (American Samoa, Guam, Puerto Rico, Northern Mariana Islands, United States Virgin Islands), and any non-government-controlled areas of Ukraine.

Since the beginning of this year, the exchange has implemented several similar changes. Last month, it suspended trading services for the following currency pairs: ALPACA/BTC, NFP/TUSD, MDX/BTC, QUICK/BTC, and XAI/BNB. A few months ago, Binance terminated all business involving Monero (XMR), causing the price of this popular privacy coin to plummet.

Increased Supply

It is worth noting that the recent supply of virtual currency market has also increased significantly.

As mature cryptocurrencies such as Bitcoin and Ethereum dominate the market, savvy investors are increasingly focused on emerging cryptocurrencies, looking for the next ample opportunity. In July, there will be 5 new cryptocurrencies available for investment: 5thScape (5SCAPE), DarkLume (DLUME), Smoke (SMOG), PlayDoge, and Pepe (PEPE).

Some industry insiders believe that 5thScape and DarkLume will be leading competitors in the top new cryptocurrencies with the potential for higher investment returns. 5thScape has pioneered virtual reality games with its 5SCAPE token, delivering immersive educational and cinematic experiences. Its strong presale and expanding virtual reality market make it a noteworthy investment. DarkLume leads the way in metaverse with its decentralized platform for secure trading and social interaction.

In addition, there has been another variable recently affecting virtual currencies. Just the other day, bankrupt Tokyo Bitcoin exchange Mt. Gox began to repay tokens worth about $9 billion to thousands of users. The platform collapsed in 2014 due to a series of thefts, losing between 650,000 and 950,000 bitcoins, worth as much as $59 billion at current prices. On Monday, the trustee responsible for overseeing the exchange's bankruptcy proceedings said that payments would begin to be made to about 20,000 creditors of the company in early July. Payment methods will include Bitcoin and Bitcoin Cash, an early branch of the original cryptocurrency.

Some insiders believe that many people will cash out and enjoy the recovered wealth. However, the lingering issue of this nearly $9 billion in Bitcoin has long been a concern for those who are bullish on Bitcoin.

Can it hit bottom here?

Actually, recent drops in cryptocurrencies such as Bitcoin have been significant compared to the high point. So, will it bottom out here? In fact, the bullish factors may also be accumulating. CryptoQuant says that the level of miner capitulation is currently comparable to the bottom of the market after the FTX collapse at the end of 2022.

After the halving of Bitcoin earlier this year, miner revenue has dropped from $79 million to $29 million per day. Bitcoin (BTC) miners are showing signs of capitulation, which is usually associated with market bottoms, as the world's largest cryptocurrency has experienced a nearly 13% sell-off over the past 30 days. Since April, the $60,000 level has been a key support/resistance level, and Bitcoin has rebounded three times from this range, each time returning to around $70,000.

Two signs of miner capitulation are the decrease in hash rate and hash price (mining income calculated by hash), both of which have plummeted this month, with hash rate down 7.7% since the halving and hash price close to its historic low. Hash rate is the mining capacity in the Bitcoin network, and hash price is the income that miners receive per unit of hash rate.

It is also worth noting that Republican presidential candidate Donald Trump posted on Truth Social last month, expressing strong support for Bitcoin. He acknowledged the geopolitical significance of the world's largest cryptocurrency and warned that any policy that seeks to hinder the development of Bitcoin will only help its competitors. Trump's statement not only made him the first candidate in a major party to support Bitcoin, but also made the discussion of classifying Bitcoin as a strategic reserve asset the focus. Recently, Trump's popularity has surged again.

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