Bitcoin Pushed Below $58K as Market Awaits Mt. Gox Payouts

Bitcoin’s (BTC) price took a hit on July 4, dropping by 4.2% over the past 24 hours to trade at $57,634 at the time of writing.

This brings the cryptocurrency to its lowest point since early May.

Rachael Lucas, a crypto analyst at BTC Markets, explained that falling below the $60,000 resistance line represents a psychological threshold for many investors. She indicated that if Bitcoin stays under this level, short-term volatility might increase.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe – We publish new crypto explainer videos every week!

One major factor influencing this volatility is the upcoming $9.6 billion worth of BTC repayments to creditors of the long-defunct crypto exchange Mt. Gox, which will add significant selling pressure to the market.

Additionally, spot Bitcoin exchange-traded funds in the US have seen declining trading volumes, with figures dropping to around $807 million on July 3.

Despite these challenges, Lucas suggested that if market liquidity remains strong, Bitcoin might rebound as it has after previous sell-offs.

QCP Capital analysts also anticipate a Bitcoin rebound in July, citing the cryptocurrency’s historical positive performance during this month:

Looking at seasonality, BTC has a median return of 9.6% in July and tends to bounce back strongly especially after a negative June (-9.85%).

Nonetheless, investors should prepare for potential volatility in the near term.

In other news, the US government recently transferred 3,940 BTC to a Coinbase Prime wallet.

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.



Source link

Related Posts

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