Rain is set to fall over Bitcoin and Binance Coin in the next 24 hours, signaling bearish market conditions and sell opportunities. However, a strong sun will shine over Ether and Cardano, indicating bullish market conditions and good buy opportunities.

Over a one-week time horizon, Bitcoin is set to face drizzle or slightly bearish market conditions, while Ether is likely to profit from a timid sun.

Cryptocurrencies crash, with Bitcoin below $54,400, as seized assets are sold

 The cryptocurrency trend was sharply negative over the past 24 hours as billions worth of Bitcoins seized by regulatorsflood the crypto market. Yesterday, Mt Gox trustees moved 47,299 Bitcoins valued at roughly $2.5 billion to crypto exchanges, while the German government actively sold seized Bitcoins.

 “German Government selling up to $175M BTC,” Arkham reports. The government still holds $2.3 billion worth of Bitcoins.

 The founder of the cryptocurrency Tron, Justin Sun announced he is willing *to negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.

 The price of Bitcoin nevertheless tumbled 7.8 percent to $54,392 over the past 24 hours, a four-month low, Trading View’s Bitcoin chart  shows.

 “There is no rush in trying to catch a falling knife. This is the time to sit back and let the short play out,“ 10xResearch notes in its daily market report. Meanwhile, the US stock market indices – the Nasdaq Composite and S&P 500 – trade at record highs.

 “[Crypto] Markets have continued to bleed, and social media is now showing historic levels of FUD [fear, uncertainty and doubt]… For bold traders, this is a window that some may wish to be a true contrarian and buy into the crowd's anger and frustration.,” the crypto intelligence Santiment said.

 Massive liquidations of long positions triggered by the crash

 The crash triggered liquidations of long Bitcoin positions worth more than $200 million over the past two days.

 “On-chain data confirms this is the second-largest liquidation event in #Bitcoin's entire history, right after the #FTX collapse in November 2022. This comes amidst news that Germany is selling $3.5B worth of seized $BTC, and Mt. Gox begins paying back $8.5B to creditors, with the majority expected to be sold,” WhaleWire writes on X.

 The crash of Bitcoin dragged altcoins down with it. The price of ETH declined 11 percent to $2,87 over the past 24 hours, that of Binance Coin 12 percent and Dogecoin 16 percent.  

 Dashed rate cut hopes also weigh on investor sentiment

 Another factor putting pressure on the crypto market are dashed hopes for the long-awaited rate cuts by Federal Reserve. Earlier this week, the minutes of the US central bank’s June meeting showed that additional favorable inflation data “were required to give them greater confidence that inflation was moving sustainably toward 2 percent.” 

Investors will today take cues regarding the strength of the US economy from the job data being released. Analysts expect the world’s largest economy to have cooled down in June, resulting in the creation of “only” 190,000 nonfarm jobs. This would suggest that inflation is dampening and bodes well for rate cuts in both September and December.Lower rates make risky assets such as crypto more interesting to hold for investors as they tend to generate higher returns.