Bitcoin (BTC) price dropped 5.8% between June 23 and June 24, reaching its lowest level in seven weeks at $59,700. Despite a modest recovery to $60,400, a total of $153 million in leveraged long BTC futures was forcefully liquidated due to insufficient margin. This movement caused derivatives metrics to shift to a neutral sentiment, ending a bullish trend that had lasted five weeks.
Concerns surrounding a selloff from Mt. Gox and the German government
Traders are now questioning whether the worsening crypto market conditions indicate a longer bear market or a momentary panic due to miners being forced to cover expenses amid lower profitability and the potential sale of large stashes by known entities. Should traders wait for a dip to $57,500 or increase their positions during this period of fear, uncertainty, and doubt?
Some analysts raised concerns after the failed exchange Mt. Gox bankruptcy estate announced the imminent repayment in Bitcoin. Anonymous influencer fejau stressed that the disbursement announcement could have been anticipated by insiders, which explains the recent price weakness. However, fejau is puzzled by Bitcoin’s performance given the constructive macroeconomic scenario.
Source: fejau_inc
On May 28, 2024, Mt. Gox transferred 141,686 BTC worth $8.6 billion, marking the first movement from the collapsed exchange in over five years. The trustee has confirmed that a “portion of cryptocurrency rehabilitation claims” will be released in July 2024. While there is no certainty on how many coins will be effectively distributed in the near term, investors fear that a significant portion will be sold, leading to an exit from the crypto markets.
A recent transfer of nearly 6,500 BTC on June 19 from a wallet attributed to the German government by Arkham Intelligence has also triggered speculation of a potential selloff. The wallet held nearly 50,000 BTC, worth over $3 billion, believed to have been seized from an illegal movie website that operated in 2013. Although no official confirmation was provided, the latest transfers were to known exchanges.
Regardless of the possibility of interest rates going…
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