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.

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.