Bitcoin the primary crypto asset has fallen below its $61,000 price level in the early hours of today with the asset now trading for $60,400 at the time of report.
The crypto asset has fallen from $62,000 yesterday to $60,400 representing a 3% decline in price value over the last 24 hours.
The decline in Bitcoin price affected other major crypto assets with Ethereum, Solana, and Dogecoin all witnessing a 3% drop in price as well.
Bitcoin’s drop in price value can be attributed to various pressures the most significant being an impending major activity on the Mt. Gox exchange. The now-defunct Mt. Gox exchange is expected to begin the distribution of Bitcoin this month.
QCP Capital, a Singapore-based crypto firm shed more light on this issue in a Telegram broadcast to its nearly 14,000 members.
“The Mt Gox release is also slated to happen this week,” the firm wrote in its Telegram broadcast. “This overhang of up to 140,000 BTC should continue to weigh on markets, especially since the exact release schedule is unknown right now. The firm added.
Despite the drop in Price value due to the looming Mt. Gox activity Bitcoin has maintained a support level above $60,000 and Ethereum has not fallen below $3300. These are positive signs according to QCP Capital.
Crypto analyst Ali shared his position on the crypto markets should Bitcoin price rebound from its current level to $62,600. He cited CoinGlass data stating that there is going to be significant liquidations should Bitcoin rebound past $62,000.
“Over $1 billion will be liquidated if #Bitcoin now rebounds to $62,600,” he wrote on X this morning.
Ali also pointed out the possibility of Bitcoin breaking its critical resistance level which he called was the $65,795 price level.
“One of the most crucial resistance areas for #Bitcoin is $65,795. If $BTC can break past this level, the next significant target is $78,700!” Ali added.
Tom Lee, managing partner and head of research at Fundstrat Global Advisors gave his 2 cents on the Mt. Gox issue from a long-term perspective in a recent interview with CNBC.
“Bitcoin is probably struggling from the Mt. Gox starting distribution since July that was a huge overhang for many years but if I was investing in crypto knowing that one of the biggest overhangs is going to disappear in July, it’s a reason to expect a strong rebound in the second half of the year,” Tom stated
Over 140,000 BTC is set to be redistributed from the now-defunct Mt. Gox exchange and this activity is viewed as a net negative for Bitcoin price value.
What to Know
- Adding to the negative sentiment surrounding Bitcoin, the primary asset’s spot Exchange Traded Funds (ETFs) witnessed significant outflow yesterday. The ETFs experienced an outflow of $13.6 million on July 2 according to SoSo value.
- Gox was one of the early cryptocurrency exchanges. It was based in Tokyo and became notorious for huge losses after suffering hacks between 2011 and 2014. The exchange has now gone bankrupt and is set to offload over $9 billion worth of coins into the crypto market.
