According to CoinDesk, Bitcoin and other major cryptocurrencies experienced a significant drop during Asian trading hours, reversing the gains made earlier in the week. This price drop is partly attributed to concerns about large Bitcoin sales from the defunct Mt. Gox exchange, which is set to distribute assets stolen in a 2014 hack later this month.
Bitcoin led the declines in Asian trading hours as major tokens wiped out gains made at the start of the week. Bitcoin dropped to $60,900 from over $62,000 shortly after Tokyo markets opened, with losses of up to 3% across ether, Solana's SOL, and dogecoin. XRP was little changed while Cardano's ADA pared some gains from a Tuesday rally as its development foundation published certain indicators to comply with European regulatory requirements. The CoinDesk 20, a liquid index of the biggest tokens, has fallen more than 1.7% in the past 24 hours.
The declines came as U.S.-listed exchange-traded funds tracking bitcoin recorded outflows of $13 million, breaking a five-day streak of inflows. Singapore-based QCP Capital suggested that concerns about large Bitcoin sales following distributions by the defunct Mt. Gox exchange likely contributed to the bearish sentiment. Mt. Gox is set to start distributing assets stolen from clients in a 2014 hack in July 2024, after years of postponed deadlines. The repayments will be made in bitcoin and bitcoin cash, potentially adding selling pressure to both markets.
Despite the short-term turbulence, some traders maintain a long-term bullish outlook, with expectations of a rally of up to $150,000 after the Mt. Gox distribution is completed. Tom Lee, the head of research at Fundstrat Global Advisors, expressed optimism about a sharp rebound in the second half, expecting Bitcoin to reach $150,000 in 2024 due to demand from the spot ETFs, the reward halving, and Federal Reserve interest-rate cuts.