itcoin’s value dropped below the $60,000 mark on July 3 experiencing more than a 4% decrease within a day according to Coinmarketcap. This resulted in the leading cryptocurrency’s price hitting a low of $59,600 as per records.
The decline in Bitcoin’s value from the beginning of June led to an 18% decrease, during the quarter of 2024. Investors were optimistic, about breaking through the $70,000 resistance level to kickstart the trend again. However, falling below $60,000 indicates that the current price consolidation phase might continue for a while.
Mt Gox Starts Creditor Repayments
The commencement of creditor repayments by Mt. Gox has been highlighted as a development. The defunct cryptocurrency exchange collapsed in 2014 following a hack that resulted in the theft of most of its Bitcoin holdings. It was reported to owe $9.4 billion worth of BTC to around 127,000 users at market prices.
Charles Edwards, the founder of Capriole Investments pointed out in a tweet, an increase in Bitcoin that had not been moved for 7 to 10 years. He suggested that this could be linked to the Mt. Gox trustee initiating repayments after years of proceedings. A massive transfer of over $9 billion worth of Bitcoin occurred on chain within a day surpassing transaction volumes by a large margin.
As numerous creditors are now cashing out after holding onto their profits untouched for a decade it is reasonable to assume that some may choose to sell their holdings in the market. Additionally, the trustee is legally mandated to convert cryptocurrencies into fiat currency for repayment purposes, which may have contributed to selling pressure pushing Bitcoin below $60K.
ETF inflows
On a note investment products such as ETFs have amassed, over $52.5 billion worth of Bitcoin since their launch this year. This growing institutional demand could potentially help offset the impact of Mt Gox’s coins entering circulation. Big companies are also seen moving amounts of money to trading platforms hinting at the possibility of sellers being involved.
Bitcoin price forecast
As Bitcoin drops below a support level experts will keep an eye on whether $60K remains a barrier to break. If there’s a close, below this mark we might see more short-term downsides with targets around $50K. On the side reclaiming $60K and closing above it on a weekly basis could signal a positive trend for the bull market.
The sudden influx of Mt. Gox coins into the market after ten years may exert selling pressure over the months. Nevertheless, ongoing accumulation by investors could help offset this impact. The delicate balance between these two opposing factors will play a role, in determining the direction of Bitcoin prices.
