Bitcoin Price at Risk of Dipping Below $60,000 Amid Repayments from Defunct Mt. Gox and German Sell-Off
Summary:
Bitcoin may face instability and a potential price drop below $60,000 due to repayments from collapsed exchange Mt. Gox and a sell-off from the German government. Analysts like Willy Woo and Rekt Capital anticipate a one to four weeks of price correction before a resumed rally. The repayment of $9.4 billion in Bitcoin to Mt. Gox creditors can instigate a market sell-off, adding to the pressure. Despite this, some traders regard the price dip as temporary.
Potential instability is looming for Bitcoin due to two factors; upcoming repayments from the fallen Mt. Gox cryptocurrency exchange and the German government's sell-off, both of which might drive Bitcoin prices lower than $60,000. Willy Woo, a renowned Bitcoin analyst, indicates that there might be a price correction lasting up to a month before the currency's price surge recommences.
Marking the activity of speculators in the market he says that there should be a noticeable decrease before the currency stabilizes, sees lesser trading, and then returns to a growth trajectory. This prediction aligns with crypto pundit Rekt Capital's expectations of a drop following the recent weekly closing price of Bitcoin.
The foreshadowed Bitcoin price drop is expected to be compounded by a repayment plan initiated by the defunct exchange Mt. Gox. The platform plans to begin reimbursing its former users in July. The exchange owes about $9.4 billion worth of Bitcoin to nearly 127,000 creditors, a decade-long wait that could potentially lead to a surge in Bitcoin selling.
Further, Eric Balchunas, a senior ETF analyst at Bloomberg, indicates this sell-off would counterbalance more than half of all ETF inflows. Adding to this brew of uncertainty is the German government's move to sell nearly 6,500 BTC recently, according to Arkham Intelligence.
Despite these murky prospects, some remain optimistic. Jelle, a pseudonymous crypto trader, suggests that the sharp drop in Bitcoin prices could just be a temporary dip. He bases his observation on the relative strength index (RSI), a widely-used measure to gauge whether a commodity is overpriced or underpriced, by considering the scale of recent price shifts.
Note, however, this information does not intend to provide financial advice or recommendations. The realm of investments and trading is fraught with risks. Therefore, thorough research is highly advised before making any financial decisions.
Published At
6/24/2024 6:39:34 PM
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