Bitcoin (BTC) has lost 5% in the last 24 hours, falling below $58,000 and reaching its lowest levels since early May, despite expectations for a price recovery in the market.
Bitcoin, Mt. Gox Drops Below $59,000 Amid Payment Concerns and US Economic Uncertainty
“A drop below the $60,000 resistance line is important as it signals a psychological barrier for many investors. If Bitcoin remains below this level, we could see increased volatility in the short term,” said Rachael Lucas, a crypto analyst at Australia's BTC Markets exchange.
Key Factors Affecting the Decline
Mt. Gox Payment
The recent surge in Bitcoin price was largely due to collapsed cryptocurrency exchange Mt. It is attributed to the upcoming payment to Gox's creditors.
Creditors are expected to receive 142,000 BTC worth approximately $9 billion starting in July. Lucas explained that the significant retracement in Bitcoin will add “significant selling pressure” to the market as it absorbs additional supply. What is the Mt.Gox Incident?
Japanese Cryptocurrency Exchange Mt.Gox, which requested bankruptcy after hackers stole 850 thousand Bitcoins in 2014, could not pay the money of many investors after announcing its bankruptcy.
As a result of the lawsuits that lasted for about 8 years, it was determined that there was a wallet belonging to the bankrupt exchange, with 200,000 Bitcoins forgotten in it. Now these Bitcoins will be paid back to the victims.
German Government Selling BTC
Recently, the German Government has sent the seized Bitcoins to the exchanges to be sold, creating a serious selling pressure in the market.
US Economic Uncertainty
Investor uncertainty regarding US inflation and interest rates continues to put pressure on crypto prices.
Federal Reserve Chairman Jerome Powell recently stated that although he acknowledged some progress, more work still needs to be done to control inflation.
While investors expect two or more interest rate cuts this year, the Fed has signaled there may be only one cut in borrowing costs for the rest of the year. “This has contributed to risk aversion among investors,” Lucas added.
Market Reactions and Forecasts
Analysts at QCP Capital and Coinbase have previously stated that Bitcoin could rebound in July, citing the positive seasonality the cryptocurrency has historically experienced. On Monday, Bitcoin rose to $63,500.
Despite the current downturn, market participants, especially the market Mt. He remains cautiously optimistic about Bitcoin's long-term prospects once Gox payments stabilize and economic conditions become clearer.
*This is not investment advice.
