Report: The cryptocurrency market may have reached a potential local bottom, but be cautious of the upcoming news agenda from the Federal Reserve

News on July 8, the latest report from Bitfinex Alpha states that on July 3, Bitcoin's price fell below a 120-day range to $53,219 due to market concerns about the German government and Mt.Gox creditors selling off. However, weekend market data suggests it may have reached a potential local bottom. The market realizes that although the Bitcoins transferred by the German government are of high nominal value, they account for a small proportion of total trading volume. Volatility indicators show that the market expects more stability in the future; Bitcoin may hover at current levels or see reduced declines. Market positioning shows complacency among short sellers with more late short investors in the short term; both sides may lack clear conviction. Long-term Bitcoin holders continue to realize significant profits while sell-offs by short-term holders may be nearing exhaustion. For the first time since May 1st low point, funding rates for perpetual Bitcoin contracts turned negative which could indicate an oversold market; combined with recovering SOPR usually means that markets are finding their bottoms. On macroeconomic aspects, Federal Reserve officials remain cautious about rate cuts despite labor market data and easing inflation supporting looser monetary conditions. The institution does not anticipate a Fed rate cut at its policy meeting from July 30-31 but still holds hope for one in September.