July 14, 2024
Bitcoin Price Drops Amid Mt. Gox Repayment Concerns
Bitcoin price today

Bitcoin Price Drops Amid Mt. Gox Repayment Concerns

Wednesday, July 3, 2024: Bitcoin Price Today is $60,158 and fell below the critical $60,000 barrier earlier in the day. It ignited the fears of protracted price consolidation in light of the impending release of $9 billion BTC from Mt. Gox. On July 3, at 10:33 am UTC, Bitcoin had dropped 4.2% in the previous day to a local low of $59,600. Bitcoin has dropped 1.8% in the last week as a result of this fall, as per CoinMarketCap.

BTC/USD, 1-day chart. Source: CoinMarketCap

Since June, the price of cryptocurrencies has been declining; in the second quarter of 2024, it fell by almost 18%.

Impact of Mt. Gox Creditor Repayments on Bitcoin Price

Investors have been expecting fresh all-time highs for Bitcoin in the event of a breakout above the $70,000 barrier. The $60,000 support level’s loss, nevertheless, can indicate a protracted market decline. The anticipated beginning of Mt. Gox creditor repayments, which is projected to begin in early July, is partially responsible for the recent decline below $60,000.

Perhaps starting to pay back creditors is Mt. Gox, the now-defunct cryptocurrency exchange. Charles Edwards, the founder of Capriole Investments, published Bitcoin transfer volume data that indicates tokens were last transferred seven to 10 years ago. In a July 2 X post,

“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. It looks like those distributions really are coming.”

Bitcoin: spent volume. Source: Charles Edwards

Edwards mentioned that over 127,000 creditors of Mt. Gox owe more than $9.4 billion in Bitcoin and have been waiting more than ten years to get their money back. Several investors may decide to make a profit after 10 years of holding their gains intact.

Despite this, institutional inflows into U.S.-based spot Bitcoin exchange-traded funds (ETFs) could offset the $9 billion from Mt. Gox. According to Dune, these ETFs have amassed nearly $52.5 billion in Bitcoin since their introduction in January.

Bitcoin ETFs, net flows. Source: Dune

Whale Activities and Market Reactions

The actions of huge Bitcoin holders, or “whales,” could also have an impact on the substantial decline in Bitcoin price below $60,000. Within three minutes, an anonymous whale sold $180 million worth of Bitcoin, a significant sum to be sold at market value in such a short period. This significant sale was emphasized by industry watcher Zaheer in a chart published in a July 3 X article.

Furthermore, according to Lookonchain, another unidentified whale sent 1,723 BTC—worth more than $168 million—to Binance on the last day. This move to the biggest cryptocurrency exchange in the world raises the possibility that the whale is trying to sell and lock in profits, which would further down the Bitcoin price.

BTC whale transfers to Binance. Source: Lookonchain

In conclusion, both substantial whale activity in the market and probable repayments to Mt. Gox creditors have contributed to Bitcoin’s recent decline below $60,000. Investors are attentively observing these developments to determine the future course of the cryptocurrency.

Image by Monoar Rahman Rony from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

Related posts

Bitcoin’s at $63,259, Slips Below $62.5K: BTI Signals Neutral Trend

Chloe Taylor

Bitcoin’s Dive to $41K Signals ‘Sell the News’ Wave, Ether and Pepe Tokens on a Continued Decline 

Anna Garcia

Bitcoin’s at $66,090, Traders Ignore Silk Road Sale

Anna Garcia

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.