⛔⛔ 4 REASONS WHY BITCOIN DIPPED BELOW $60K⛔⛔
1. Downtrend Since June 📉
🔻 Bitcoin has struggled to maintain upward momentum since the beginning of June. Over the second quarter of 2024, BTC logged an 18% decline, and it continued to face headwinds despite positive ETF inflows.
2. Potential Mt. Gox Repayments 💰
💸 The recent dip below $60,000 is largely attributed to the impending Mt. Gox creditor repayments. The defunct exchange, which collapsed over a decade ago, holds over $9.4 billion worth of Bitcoin. Approximately 127,000 creditors have been waiting to recover their funds, and the repayment process may have begun.
📊 Spent Volume Surge:
Charles Edwards, founder of Capriole Investments, highlighted an enormous on-chain Bitcoin movement, suggesting that the long-awaited Mt. Gox distributions are indeed happening. Edwards noted, “The entire history of this chart has disappeared because an enormous sum of Bitcoin moved on-chain, 10X more than the previous highs. $9B. But by who? Mt. Gox.”
3. Market Reactions and Implications 📊
🌐 Market Uncertainty:
The potential sell-off from Mt. Gox creditors, who may liquidate their holdings after a decade, could exert significant selling pressure on Bitcoin. This, combined with ongoing market uncertainties, has investors bracing for further volatility.
📉 Support Levels:
Bitcoin’s local bottom of $59,600 threatens to extend the current consolidation phase. Investors have been eyeing a breakout above $70,000 to pave the way for new all-time highs, but losing the $60,000 support could delay such a rally.
4. Institutional Inflows vs. Sell Pressure ⚖
🏦 ETF Inflows:
Despite the sell-off fears, institutional inflows into U.S.-based spot Bitcoin ETFs have been strong. Since their launch in January, these ETFs have amassed over $52.5 billion worth of BTC, potentially absorbing some of the selling pressure from Mt. Gox repayments.
Will BTC crash? You decide!
@Professor Mende - Founder of BONUZ Project - in Dubai UAE out!