Bitcoin Dip Below $60K: Exploring The Catalysts & Chart Insights

Earlier today, Bitcoin price dropped below the $60,000 mark, raising concerns about extending the current price stabilization phase. Mt. Gox may have begun releasing $9 billion worth of BTC, which could further impact prices.

In the 24 hours up to 10:33 am UTC, July 3, Bitcoin fell by 4.2%, hitting a low of $59,600. According to CoinMarketCap, the cryptocurrency has declined by 1.8% over the past week.

BTC/USD, 1-day chart. Source: CoinMarketCap

Since June, the Bitcoin price has dropped by nearly 18% in the second quarter of 2024, signaling a downtrend. Investors are hoping for a rise above $70,000 to reach new record highs. However, if the current support at $60,000 is lost, a more extended price correction could occur.

Bitcoin On-Chain Surge: Mt. Gox’s $9 Billion Redistribution Explained

However, Bitcoin’s drop below $60,000 may be due to Mt. Gox creditors starting repayments, expected in early July.

Charles Edwards, founder of Capriole Investments digital asset hedge fund, shared a Bitcoin transfer volume chart. It suggests that the defunct crypto exchange might be repaying creditors, based on tokens last moved seven to 10 years ago.

Edwards posted on X on July 2:

“An enormous amount of Bitcoin moved on-chain, 10 times higher than previous peaks, wiping out the entire history of this chart. $9 billion was involved. But who moved it? Mt. Gox. It seems those distributions are indeed happening.”

Bitcoin: spent volume. Source: Charles Edwards

More than 127,000 Mt. Gox creditors have been waiting over 10 years to recover their funds, totaling more than $9.4 billion in Bitcoin. After a decade of untouched profits, many investors are expected to cash out.

However, the $9 billion from Mt. Gox could be absorbed by institutional inflows from United States Bitcoin exchange-traded funds (ETFs), which have accumulated over $52.5 billion worth of BTC since their launch, as reported by Dune.

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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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