BTC’s price dropped to less than $61,000 on Wednesday, erasing its getting from the past few days. It shortly rallied to above $63,000. The sudden drop is mainly associated with the fears of Mt. Gox repayments, beginning this month and can occur anytime now.
QCP Capital, a Singapore-based trading firm, explained, “The Mt Gox release is also slated to happen this week.” It spoke about how not knowing the exact repayment dates can hold BTC’s price down. “This overhang of up to 140,000 BTC should continue to weigh on markets, especially since the exact release schedule is unknown right now.”
Mt. Gox will finally pay its creditors waiting to get their funds back since the now-defunct exchange shut its doors in 2014. A decade later, its bankruptcy estate will release funds to defrauded users.
In a statement last month, Mt. Gox’s trustee Nobuaki Kobayashi announced that “the repayments will be made from the beginning of July 2024.” With that, $15 billion of BTC will witness circulation. That number is obviously concerning for those holding the asset, pressuring them to sell and take profits before the 140,000 bitcoins hit circulation.
In fact, Mt. Gox’s repayments caused BTC’s price to fall last month. It will expectedly witness more resistance as repayments approach.
BTC registered a 3% loss on Wednesday, and other top altcoins like ETH and SOL, and memecoin DOGE followed suit, mimicking similar losses. XRP maintained its price while ADA rose in value thanks to adopting guidelines that will keep it compliant under the EU’s newly launched Markets in Crypto Assets (MiCA) framework.
US-listed BTC ETFs did not help BTC’s price either. After attracting inflows for five days consecutively, and looking promising going ahead, they recorded net outflows of $13 million. The ongoing bitcoin selling from the German government does not help either—moving millions of dollars of bitcoins regularly keeps the asset from breaking out and rallying upwards.
However, trends show that July witnesses an average of over 7% gains. That will be an interesting factor, considering how many more align to add resistance to BTC’s upward movement.
Image by Miloslav Hamřík from Pixabay
