Published
2 months ago on
July 04, 2024
On July 3, Bitcoin‘s price dipped below the significant $60,000 mark, sparking concerns of extended price consolidation as the potential release of $9 billion in BTC from Mt. Gox looms.
Bitcoin dropped 4.2% in the 24 hours preceding 10:33 am UTC on July 3, reaching a low of $59,600. According to CoinMarketCap, the cryptocurrency is down 1.8% over the week.
Since June, Bitcoin has been in a downtrend, marking an almost 18% decline in the second quarter of 2024.
Investors have been eagerly awaiting a breakout above $70,000 to trigger new all-time highs, but falling below $60,000 could signal a prolonged price correction.
The potential start of repayments to Mt. Gox creditors might be contributing to Bitcoin’s decline.
The defunct exchange may have begun repaying creditors, as suggested by a Bitcoin transfer volume chart for tokens last moved between seven to ten years ago, shared by Charles Edwards, founder of Capriole Investments. Edwards noted 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.”
Mt. Gox owes over $9.4 billion in Bitcoin to about 127,000 creditors who have waited for over a decade to recover their funds. Many investors might cash out after years of untouched profits.
READ MORE: Fetch AI Price Prediction: Major Surge Anticipated Amid AI Crypto Merger and Market Optimism
However, the $9 billion from Mt. Gox could be offset by institutional inflows to U.S.-based spot Bitcoin exchange-traded funds (ETFs).
Since their January launch, these ETFs have amassed over $52.5 billion in BTC, according to Dune.
Questions arise about whether Bitcoin whales influenced the price drop below $60,000.
One large Bitcoin holder sold $180 million worth of Bitcoin within three minutes, an unusually high amount for such a brief period. Popular industry watcher Zaheer highlighted this large sale in a July 3 X post.
Further contributing to the decline, another unknown whale transferred 1,723 BTC worth over $168 million to Binance within the past 24 hours, according to Lookonchain. This transfer suggests the whale might be looking to sell and lock in profits.
To submit a crypto press release (PR), send an email to [email protected].
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Read on Crypto Intelligence Investment Disclaimer
