US Federal Reserve (Fed) Chairman Jerome Powell gave a speech in Sintra yesterday and continued the dovish tone he has shown recently.
Powell emphasized that the Fed needs to be more confident before cutting interest rates, emphasizing that the 4% unemployment rate is “still very low,” inflation is returning and he does not see inflation falling to 2%. this year or next year.
As a result, Bitcoin (BTC) recorded a 4.2% drop over the past 24 hours and lost the key price mark of $60,000.
Source: TradingView
Bitcoin's weak price action has pulled nearly all of the top 100 down, causing the liquidation of more than $300 million in the past day, affecting 112,480 traders.
Source: Coinglass
The outlook isn't just bleak in the short term after Powell's comments.
Ben Kurland, CEO of DYOR, emphasized that deflation is often considered a favorable indicator, but the Fed remains very cautious about lowering interest rates, indicating that the agency does not yet consider the current economic environment to be stable enough plans to cut interest rates, which could lead to volatility in the cryptocurrency market. Cryptocurrencies often experience price fluctuations that react to overall economic indicators and central bank policies.
Notably, Kurland stated that the Fed's forecast that 2% inflation will not be achieved this year or next, combined with a very large and unsustainable budget deficit, raises concerns about stability. long-term economic stability.
While the unemployment rate at 4% suggests a recovery, it also implies that the Fed may maintain high interest rates for longer, often reducing investment in riskier assets such as electronic money.
Mt.Gox pays off debt
Additionally, Bitcoin's drop below $60,000 could also stem from the possibility of Mt. Gox repaid creditors in early July.
This defunct cryptocurrency exchange may have started paying off its creditors, based on a chart of Bitcoin transfer volumes for tokens last moved in the past seven to 10 years compiled by Charles Edwards, the founder of digital asset hedge fund Capriole Investments, shared.
“The entire history of this chart has disappeared because a huge amount of Bitcoin has moved onchain, 10 times more than the previous high. 9 billion dollars. But by whom? MT. Gox. It looks like those distributions are really going to happen.”
This chart will blow your socks off and slap you in the face.
The entire history of this chart has disappeared because an enormous sum of Bitcoin moved onchain, 10X more than the previous highs. $9B. But by who?
Mt. Gox.
It looks like those distributions really are coming. pic.twitter.com/ViOudFQasb
— Charles Edwards (@caprioleio) July 2, 2024
More than $9.4 billion in Bitcoin will be repaid to approximately 127,000 creditors of Mt. Gox waited more than 10 years to get their money back. This means many investors will withdraw their money after a decade of being untouchable.
However, $9 billion from Mt. Gox could be absorbed by institutional capital flows into U.S. spot Bitcoin ETFs. These ETFs have accumulated more than $52.5 billion in BTC since their launch in January.
Bitcoin ETF net inflows. Source: Dune
Whales discharge their goods
Notably, the behavior of a whale or a large Bitcoin holding institution may have caused Bitcoin price to drop below an extremely important psychological level.
An unknown whale sold $180 million worth of Bitcoin in just three minutes – a huge amount to sell at market price in such a short time.
Zaheer, a renowned industry watcher, spotted this massive sale based on the chart below.
BTC/USD, price chart and total funding rate. Source: Zaheer/X
According to Lookonchain, another anonymous whale deposited 1,723 BTC worth more than $168 million into Binance in the past 24 hours, contributing to the price drop.
The whale deposited 1,023 $BTC($62.2M) to #Binance again 45 minutes ago.
The whale has deposited 1,723 $BTC($106M) to #Binance in the past 24 hours.
And the price of $BTC has dropped by ~3% in the past 24 hours.
Address:
1J22CPni1EsmT15A9qveydfWMoPMRw9Lp3 pic.twitter.com/mLuvCSNlAv— Lookonchain (@lookonchain) July 3, 2024
The transfer of Bitcoin whale funds to the world's largest cryptocurrency exchange suggests the entity is looking to sell and lock in profits.
https://tapchibitcoin.io/gia-bitcoin-58-000.html
