Bitcoin (BTC) fell below $61,000 today, while major tokens erased gains made earlier in the week.
Bitcoin, Mt. Gox Drops Below $61K Amid Distribution Concerns, ETF Outflows
This decline coincided with U.S.-listed Bitcoin exchange-traded funds (ETFs) experiencing net outflows of $13 million on Tuesday, ending a five-day streak of inflows.
Bitcoin fell from $62,000 to $60,900 shortly after Tokyo markets opened. Losses reached as high as 3% for other major cryptocurrencies, including Ethereum (ETH), Solana's SOL, and Dogecoin (DOGE).
In contrast, XRP remained relatively unchanged, while Cardano's ADA gave back some of its gains from Tuesday's rally, driven by the development foundation's compliance with European regulatory requirements.
The declines in cryptocurrency prices were accompanied by U.S.-listed ETFs tracking Bitcoin reporting net outflows of $13 million, breaking a five-day streak of inflows.
According to Singapore-based QCP Capital, the defunct Mt. Gox exchange distributions likely contributed to the bearish trend.
“The release of Mt. Gox is also scheduled to take place this week,” QCP Capital said in a Telegram post on Tuesday. “This glut of up to 140,000 BTC should continue to weigh on the markets, especially since the exact release schedule is unknown at this time.”
The 2014 hacked Mt. Gox will begin distributing assets to former customers in July 2024, after years of delayed deadlines. Refunds will be made in Bitcoin and Bitcoin cash, potentially adding selling pressure to both markets.
Despite the short-term bearish trend, some investors remain bullish in the long term.
Tom Lee, director of research at Fundstrat Global Advisors, Mt. Gox reiterated his optimistic prediction that BTC could rise as high as $150,000 once its distribution is completed.
“One of the biggest bumps will disappear in July. I think that's a reason to expect a sharp recovery in the second half,” Lee said in an interview with CNBC on Tuesday.
Lee first predicted in February that BTC could reach $150,000 in 2024, citing factors such as demand from spot ETFs, the upcoming bitcoin reward halving, and expected interest rate cuts by the Federal Reserve.
*This is not investment advice.