Bitcoin loses 59,000
On July 4, Bitcoin ($BTC) fell below the key $59,000 level again after falling below the psychological $60,000 level the day before (3rd).
Image source: CoinGecko
At the time of writing, Bitcoin ($BTC) is trading at $58,968, down 3.7% in the past 24 hours and already down 14% in the last 30 days. Bitcoin prices have been in a downward trend since June, falling nearly 18% in the second quarter of 2024.
All this time, investors have been eagerly anticipating Bitcoin's return to the $70,000 mark and another break above the all-time high set in March. But experts warn that a loss of support at $60,000 could mean the market faces a longer price correction.
The current downturn in the market may be related to several reasons, including current macroeconomics, lack of liquidity, miner capitulation, and the possibility that Mt. Gox creditors may begin paying down their debt.
Mt. Gox creditors may start paying off debts
First of all, one of the important reasons why Bitcoin fell below $60,000 is that Mt. Gox creditors are expected to begin collecting compensation owed by the exchange in early July. According to Bitcoin shared by Charles Edwards, founder of digital asset hedge fund Capriole Investments Transfer volume chart, the defunct cryptocurrency exchange may have begun paying off its creditors.
Judging from the data, there are approximately 127,000 Mt. Gox creditors, who can recover more than $9.4 billion worth of Bitcoin in total. These creditors have been waiting for 10 years. Many investors may not choose to continue holding, but Quickly sell and cash out. For this reason, some whales in the market are reducing their positions to avoid the risk of selling.
The American League’s attitude is unclear
In addition, market optimism has been declining since Fed Chairman Ball said he would not cut interest rates immediately, with liquidity concentrated below $60,000. Inflation data that has slowed but has not declined significantly has also intensified market sentiment. Instability causes Bitcoin prices to fluctuate.
Risk of falling below $60,000
Since its debut on January 11, 11 U.S. Bitcoin spot ETFs have accumulated net inflows of more than $14 billion, but according to Farside Investors, 30% of these flows are part of "non-directional arbitrage strategies," indicating Some funds do not buy because they are bullish on Bitcoin, but just take advantage of short-term market fluctuations for arbitrage operations.
According to the analysis of data provider 10x Research, the average entry price of buyers of U.S. Bitcoin spot ETFs is between US$60,000 and US$61,000. If the price of Bitcoin ($BTC) falls below this range for a long time, it may bring A wave of reckoning.
"This is the time" when you have the best chance to see a rebound
Although the market is currently in a downturn, many experts are still optimistic about the future and believe that the current downturn is just a short-term fluctuation.
Image source: BMR
Judging from historical data, after a bearish month in June, July is usually a bullish month for Bitcoin. Analysts believe that as market sentiment recovers, Bitcoin will regain its high point this summer and set a year-end target Put $100,000.
In addition, according to data from IntoTheBlock, Bitcoin whales have accumulated more than 55,000 Bitcoins in the past 30 days. The increase in total volume peaked after Bitcoin fell below $60,000, showing that although retail investment is smaller People choose to sell when faced with price fluctuations, but whales are likely taking advantage of this decline to increase their holdings of Bitcoin. For investors, maintaining patience and confidence may be the best strategy to face the current highly volatile market.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
