Bitcoin's blues could linger throughout July, but investors are still optimistic about the cryptocurrency in the second half of the year. The cryptocurrency has yet to break out of the tight range it's been stuck in – between $60,000 and $70,000 – since March. This week it fell to the lower end of that range and is now on pace to finish June down 10%, according to Coin Metrics.
That would make it its worst month since April and second down month in three. July is usually a strong month for bitcoin, which has finished higher for the month in seven of the last 11 years, according to CoinGlass. At $61,000, bitcoin has key support at the $67,000 level, chart analysts say , although a breach below that could be "damaging.
" Investors are worried about the cryptocurrency taking another leg down due to the supply overhang heading into July. "The Bitcoin halving was a known positive supply event for the market for this year – we have less bitcoin being produced," said Zach Pandl, managing director of research at Grayscale Investments. "There are always other known potential sources of bitcoin supply from government for example, but it's always uncertain when that's coming to market.
To some extent, the supply that is being liquidated by things like government agencies is partly negating the positive effects over the short run of the Bitcoin having." This week, the crypto market was startled when the U.S.
and German governments sent large amounts of previously seized bitcoin to e.