As cryptocurrency markets prepare for the July 31 Federal Open Market Committee (FOMC) meeting, all eyes are on Bitcoin’s price stability. Against this backdrop, a large amount of Bitcoin was moved from defunct cryptocurrency exchange Mt. Gox, sparking concerns about a possible sell-off.
The market is in a state of disarray as long-term holders dump BTC. The FOMC meeting sparked panic, and Mt. Gox’s move added another wave to an already volatile crypto environment.
Let’s take a look at what will determine where Bitcoin goes next!
Mt. Gox Moves $3.15 Billion Worth of Bitcoin
Recently, Mt. Gox moved 45,511 Bitcoins worth $3.15 billion to three different wallets, Spot on Chain reported. The move is seen as part of the ongoing process of repaying creditors. Since the beginning of July, the exchange has moved 61,559 BTC worth $3.88 billion to multiple exchanges including Kraken, Bitstamp, and SBIVC for creditor distributions.
Despite completing identity verification, some creditors are still experiencing issues receiving payments from Kraken.
Impact on Bitcoin Price
Despite these massive transfers, Bitcoin’s price has shown remarkable stability, holding around $66,000, down slightly by 0.5%. Previously, Bitcoin price encountered a strong rejection at $70,000. Investors are now eagerly awaiting the FOMC meeting, hoping that the Fed’s comments on inflation and economic growth will guide Bitcoin’s next move.
Market sentiment
The broader market shows that there is a sizable negative gamma between $65,000 and $70,000, suggesting that the market could see volatility as Bitcoin options expire on August 2. Cryptocurrency analytics firm BloFin expects increased volatility during this period. Additionally, Bitcoin whales are still buying heavily despite the current price drop, suggesting they are confident in the long-term value of Bitcoin.
Although Mt.Gox creditors still hold assets, Mt.Gox’s latest move is not expected to bring immediate selling pressure. As of now, the market looks stable and a breakout could occur in November if Donald Trump wins the election.
Looking ahead
As Mt. Gox continues to move large amounts of Bitcoin to repay creditors and the FOMC meeting is approaching, the cryptocurrency market is set for significant activity. Macroeconomic indicators and strategic moves by large Bitcoin holders will have a significant impact on market direction in the coming weeks.
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