- Bitcoin is currently trading about 20% below its all-time high on March 14 and at a low not seen since mid-May.
- According to the Rehabilitation Trustee, the decline coincides with Mt. Gox’s announcement that it will begin to issue bitcoin and bitcoin currency repayments in July.
The price of bitcoin fell on Monday, falling more than 5% in a single trading day after Mt. Gox declared that it will begin repaying $9 billion in bitcoin and bitcoin cash in early July. Nearing the $60,000 threshold, the price of the largest digital asset in the world by market capitalization has dropped to its lowest point in nearly six weeks.
Bitcoin’s decline coincides with the closure of a bitcoin exchange. Repayments for bitcoin and bitcoin cash will be made by Mt. Gox in July, as stated in a notice that Rehabilitation Trustee Nobuaki Kobayashi sent on Monday.
According to Lee, the market is concerned about the amount of bitcoin that will be returned, and recipients are probably going to sell their coins in order to profit from the large increases in value that have been achieved over the past ten years.
The expert went on to say that while the anticipated $9 billion payout is significant, there are a number of obstacles that could strengthen bitcoin’s resiliency.
The Fed Net Liquidity Index has surpassed $6.5 trillion in the macro environment, releasing $400 billion in market liquidity and hitting a 24-month peak. According to Lee, bitcoin has the benefit and capacity to withstand any negative effects from the Mt. Gox selloff when combined with anticipated rate reductions.
Investors that don’t take risks with bitcoin
Bears are claiming that there has been a fundamental change in the market and sentiment, according to Stocklytics analyst Neil Roarty. They cite the fact that bitcoin no longer seems to be following with the Nasdaq, which surged to record highs last week.
As always in cryptocurrency, the bulls will have to console themselves with the knowledge that things can turn around very quickly, according to Roarty.
After specialists at CryptoQuant stated that the price of bitcoin is below a crucial support level, this prediction was made. According to CryptoQuant, if this barrier is broken, there may be an 8%–12% correction near $60,000, as stated in an X post. A loss below $60,000 would be considered noteworthy, as it would take bitcoin to a level not seen since May 3, when it was trading at roughly $59,000.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
