Bitcoin
Payout affects Crypto as Bitcoin dips below $60,000
Bitcoin market is reacting to a payout, with a noticeable decline on Monday, falling over 5% in daily trading following an announcement from the defunct exchange Mt. Gox.
The exchange is distributing $9 billion in Bitcoin and Bitcoin cash repayments starting in July, driving Bitcoin’s price down to around $60,000, its lowest level in nearly six weeks.
Analysts say investors are preemptively offloading assets in anticipation of future price drops.
According to Ryan Lee from Bitget Research, “The repayment is sparking concerns about an influx of bitcoin supply, with many expecting beneficiaries to sell their coins to secure gains accumulated over the years.”
Among factors highlighted by Lee that could mitigate the impact include a surge in the Federal Reserve’s Net Liquidity Index, peaking at $6.5 trillion, with release of $400 billion into the market, and potential interest rate cuts.
Neil Roarty of Stocklytics observed that investirs are getting cautious. He observed a fundamental shift, with Bitcoin no longer tracking the Nasdaq, which hit record highs last week.
Roarty also mentioned rumours of large-scale sales by major miners and institutions, adding to the bearish outlook.
Consequently, he warned that if this sentiment persists, Bitcoin could test the symbolic $50,000 mark.
In the same vein, CryptoQuant analysts identified these concerns, noting that Bitcoin is trading below a critical support level.
They foresee a potential correction of 8%-12% towards $60,000.
A drop below this threshold would mark a significant decline, not seen since early May.
As of the latest data, Bitcoin was trading at approximately $60,149, down 5.7% over the past 24 hours.
Ether also saw a drop of over 6%, with the global cryptocurrency market cap falling by 5% to $2.33 trillion, according to Coingecko.
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