Bitcoin
Bitcoin Drops Below $61,000 as Mt. Gox Payments Loom
Bitcoin suffered a notable drop in early Asian trading, falling from $62,000 to $60,268, marking a 3% decline.
This crisis has also affected other major cryptocurrencies, with Ethereum, Solana and Dogecoin each falling by around 3%.
The cryptocurrency market is currently dealing with several pressures, particularly the expected distribution of Bitcoin from the now-defunct Mt. Gox exchange, which is set to begin this month.
Singapore-based cryptocurrency trading firm QCP Capital highlighted the market’s focus on this issue.
“The launch of Mt Gox is also scheduled to take place this week,” the company wrote in its Telegram Group. “This glut of up to 140,000 BTC is likely to continue to weigh on markets, especially as the exact release schedule is currently unknown.”
Despite these concerns, Bitcoin managed to find support above the $60,000 mark, while Ethereum remains above $3,300, a positive sign, according to QCP Capital.
Source: Twitter account @ali_charts
Cryptocurrency analyst Ali has pointed to significant market sell-off risks if Bitcoin manages to recover and cross the psychological barrier of $62,000.
“Over $1B will be liquidated if #Bitcoin recovers to $62,600,” he wrote this morning.
He too identified critical resistance levels for Bitcoin, stating: “One of the most crucial resistance areas for #Bitcoin is $65,795. If $BTC can break above this level, the next significant target is $78,700!”
Source: Twitter account @ali_charts
Tom Lee, managing partner and head of research at Fundstrat Global Advisors, offered a longer-term perspective on current market dynamics in a interview with CNBC.
“Bitcoin is probably struggling with the Mt. Gox initial public offering since July, which has been a major glut for many years, but if I were investing in crypto knowing that one of the major gluts would disappear in July, that’s a reason to expect a strong recovery in the second half of the year.”
Lee remains bullish, suggesting that $15,000 per Bitcoin is still within reach, emphasizing that Bitcoin tends to make most of its gains in a limited number of days each year.
The market is also closely monitoring developments related to cryptocurrency exchange-traded funds (ETFs).
QCP Capital noted the market’s attention on the potential approval of an Ethereum ETF in the offing, although they believe an approval this week is unlikely.
Meanwhile, adding to the negative sentiments, spot Bitcoin ETFs experienced a net outflow of $13.6 million on July 2, following several days of net inflows, according to data from SoSo Value.
Notably, Grayscale’s GBTC ETF recorded a single-day outflow of $32.3779 million, while BlackRock’s IBIT ETF and Fidelity’s FBTC ETF recorded single-day inflows of $14.1 million and $5.4 million, respectively.
Edited by Stacy Elliott.