 ▲ Bitcoin (BTC) decline © Coin Leaders |
Bitcoin, the leading cryptocurrency, is trading around $60,000 on the 4th (Korean time).
Despite expectations of a base interest rate cut by the U.S. central bank, the Federal Reserve, 60,000 at one point during the day due to concerns that a large number of Bitcoins held by Mt. Gox, a cryptocurrency exchange that went bankrupt 10 years ago, would be released into the market. The dollar support line has collapsed.
According to CoinMarketCap, the price of Bitcoin fell to $59,417.93 at one point on this day. It has been 5 days since the 29th of last month that Bitcoin fell below $60,000.
Cointelegraph said, "Bitcoin again broke below the $60,000 support line on the 3rd (local time), showing that bears (bears) are maintaining selling pressure. Bulls (bulls) have reached the $60,000 to $56,552 support line. “It is expected that Bitcoin will move in a large range for the time being,” he predicted.
He continued, “The risk of Bitcoin’s continued sideways swing could come from selling pressure from Mt. Gox creditors, who may rush to take profits after receiving their repayment in early July. However, at a low level, the $14.8 billion since launch in January It is highly likely that purchasing power will flow from the US-based Bitcoin spot exchange-traded fund (ETF), which recorded net inflows, and it is difficult to predict the amount of Bitcoin that Mt. Gox creditors will dispose of in the open market. “Because of the uncertainty, volatility may increase over the next few days.”
Regarding this, Ki-young Ki, CEO of CryptoQuant, said, "This cycle is different in that the source of money is different. Bitcoin spot ETF accounts for a quarter of the total spot trading volume. This time, new funds are more 'mature' than ever before. “It is expected that much more mature funds will flow in in the future. Mature funds usually tend to be held for the long term.”
Meanwhile, Shiliang Tang, CEO of trading company Arbelos Markets, diagnosed with Bloomberg, "Cryptocurrency oversupply continues in a situation where liquidity is low and volatility is low due to seasonal factors."
The explanation is that there is not enough new capital inflow to absorb the oversupply, such as the sale of BTC by the German and U.S. governments, redemption of Mt. Gox, and unlocking of large-scale cryptocurrency held by VCs.
David Zimmerman, an analyst at K33 Research, said, "Due to low trading volume, the altcoin market has taken a relatively big hit. GameFi tokens in particular have suffered a large drop, and artificial intelligence (AI)-themed tokens have also stagnated. U.S. presidential election issues. “Only meme coins that focused on celebrities received attention,” he analyzed.
