The Bitcoin price dropped below the significant $60,000 mark on July 3, signaling a potential extension of the current price consolidation phase as Mt. Gox might begin releasing $9 billion worth of BTC.
Bitcoin (
BTC
) experienced a 4.2% decline over the 24 hours preceding 10:33 am UTC on July 3, reaching a local low of $59,600. The leading cryptocurrency has also decreased by 1.8% on the weekly chart, according to CoinMarketCap.
BTC/USD, 1-day chart. Source: CoinMarketCap
Since June, Bitcoin’s price has been trending downward, with a nearly 18% drop recorded in the second quarter of 2024.
Investors have been hopeful for a breakthrough above the $70,000 level to set the stage for new all-time highs. However, falling below the $60,000 support could indicate a more prolonged price correction.
Related:
How long will Bitcoin’s price consolidation last?
Did Mt. Gox start repaying creditors?
The drop below $60,000 might be due to the anticipated start of
Mt. Gox creditor repayments
, expected in early July. The now-defunct crypto exchange may have begun repaying creditors, as suggested by a Bitcoin transfer volume chart showing tokens last moved seven to ten years ago, shared by Charles Edwards, the founder of digital asset hedge fund Capriole Investments.
Edwards noted in a July 2 X
post
:
Bitcoin: spent volume. Source: Charles Edwards
More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors, who have been waiting over a decade to recover their funds. This situation could lead to many investors cashing out after years of holding their assets.
However, the potential $9 billion influx from Mt. Gox might be balanced by the institutional inflows into the United States-based spot Bitcoin exchange-traded funds (ETFs). These ETFs have accumulated over $52.5 billion worth of BTC since their inception in January, according to Dune.
Bitcoin ETFs, net flows. Source: Dune
Related:
4-week correction for Bitcoin? Mt. Gox, Germany gov’t add sell-pressure
Did Bitcoin whales cause Bitcoin to fall below $60,000?
A whale, or a large Bitcoin holder, might have triggered the price drop below the critical psychological level. An unidentified whale sold $180 million worth of Bitcoin within three minutes—an exceptionally large amount to be sold at market value in such a short time.
Industry analyst Zaheer identified this significant sale based on the chart below, as noted in a July 3 X post.
BTC/USD, price and aggregated funding chart. Source: Zaheer
Adding to the price decline, another unidentified whale deposited 1,723 BTC, worth over $168 million, to Binance in the past 24 hours, according to Lookonchain.
BTC whale transfers to Binance. Source: Lookonchain
The whale’s transfer to the world’s largest crypto exchange suggests the entity intends to sell and secure profits.
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