Bitcoin Price Falls as Investors 'Sell the News' on MtGox Payment Announcement

Bitcoin's downward move comes as defunct bitcoin exchange MtGox will begin distributing bitcoin payments and bitcoin cash in July.

Bitget Research analyst Ryan Lee told The Block that MtGox's paid announcement is "a classic 'selling the news' scenario."

"Payment in bitcoins is raising market concerns about an influx of supply, and beneficiaries are likely to sell their coins to capitalize on the significant gains made over the past decade," Lee added.

The analyst added that although the proposed $9 billion refund is substantial, it runs into several factors that may contribute to bitcoin's resistance.

"In the macroeconomic environment, the Fed's Net Liquidity Ratio has exceeded $6.5 trillion, releasing $400 billion of liquidity into the market, reaching a 24-month high. Combined with the likely rate cuts, "Bitcoin has the advantage and potential to withstand any negative impact of the Mt. Gox liquidation," Lee said.

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