On the morning of July 5, the price of the leading cryptocurrency fell below $54,000 following reports of Mt. Gox coin movements.
At the time of writing, the price is attempting to hold this level after a slight rebound.
Nobuaki Kobayashi, the trustee of the bankrupt exchange from 2014, announced plans for a phased reimbursement of 137,000 BTC to the platform’s clients in July.
At the start of the trading session in Japan, Arkham experts noted the transfer of 47,228.7 BTC (~$2.71 billion) from the exchange’s cold storage to a new address.
BREAKING
Mt Gox moves 47,228 BTC ($2.71 billion dollars) from cold storage to a new wallet. pic.twitter.com/3ZdSlC1IX2
— Arkham (@ArkhamIntel) July 5, 2024
Kobayashi confirmed that part of the payments in Bitcoin and Bitcoin Cash has been completed. Users posted the relevant statement on X.
Mt. Gox’s 1st batch of repayments on $BTC and $BCH done ✅ pic.twitter.com/jVAFhxbEPz
— Zia ul Haque (@ImZiaulHaque) July 5, 2024
During the day, Arkham noted the transfer of 1,545 BTC (~$84.9 million) from one of Mt. Gox’s cold wallets to the Bitbank exchange.
Although the total amount of Bitcoin moved by Mt. Gox is approximately 0.24% of the total coin supply, the market reacted nervously.
Market Sentiment Deteriorates
The Fear and Greed Index dropped to 29, indicating growing panic in the market.
Trader Alex Krüger noted that Bitcoin sales by the German and US authorities are also putting pressure on the price. However, he suggested that FTX creditors, who may receive $14-16 billion in fiat, will soon enter the market as buyers.
Mt Gox selling. Germany selling. US selling. But FTX creditors will be buyers. Soon. pic.twitter.com/RAyWS1JC7N
— Alex Krüger (@krugermacro) June 30, 2024
eToro market analyst Josh Gilbert, in an interview with Cointelegraph, linked the early-month price drop of the leading cryptocurrency to Mt. Gox’s debt repayments. Following today’s dip to $52,600, he expects a worsening trend in the coming days amid a flow of bearish news.
“I wouldn’t be surprised if the asset tests $50,000 within the next week, but that will be a key psychological level,” he stated.
The market’s short-term weakness will persist until a bullish catalyst emerges, which could be a buying spree during the dip or the approval of an Ethereum ETF, the expert believes.
Swyftx analyst Pav Hundal also believes the worst is yet to come for the digital gold’s price.
“A huge volume of Bitcoin is about to hit an already apathetic market. Long-term macroeconomic conditions remain positive, but in the short term, we might test $50,000, or potentially lower,” he noted.
According to Hundal, the $52,000 mark serves as a key “battleground between bulls and bears.”
10x Research also believes that worsening market sentiment could push the rate down to $50,000.
Standard Chartered has forecast a new Bitcoin peak in August.
CryptoQuant previously stated that the prerequisites for a rally resumption in the third quarter have been completed.