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Investing.com-- Bitcoin price fell on Monday amid persistent concerns over distributions by now defunct crypto exchange Mt Gox, which also battered sentiment towards broader cryptocurrency markets.

Still, the worlds largest cryptocurrency found some support around the $55,000 level after sinking to over four-month lows earlier on Monday. fell 3.8% in the past 24 hours to $55,450.3 by 01:25 ET (05:25 GMT).

The token and the broader crypto space took little support from a weaker dollar, with reports suggesting that major Bitcoin wallet holders had also begun mobilizing their wallets for potential sales.

Trustees for the now defunct Mt Gox crypto exchange said they had begun distributing tokens to clients affected by a 2014 hack.

While the trustees have not outlined the value of the distributions, wallets associated with the exchange were seen moving around $9 billion worth of Bitcoin earlier this year.

Traders dumped Bitcoin on fears that receivers of the tokens will be largely encouraged to sell their holdings, given Bitcoins massive price jump over the past decade. Such a scenario presents massive selling pressure on the token.

Several Bitcoin whale wallets were seen coming online for potential sales of their holdings, while inflows into crypto investment products were also seen largely drying up through the past few weeks.

Among broader crypto markets, major altcoins largely tracked Bitcoins steep price descent.

World no.2 token sank 4.1% to $2,906.21. The token broke below $3,000 for the first time since May.

, and slid between 4% and 7%, while meme tokens and lost 6.6% and 4.6%, respectively.

Selling pressure on Bitcoin spilled over into major altcoins, given that the token usually acts as a figurehead for the crypto industry.

As such, crypto prices largely disregarded recent weakness in the , amid growing optimism over interest rate cuts by the Federal Reserve. This trend saw Wall Street hit record highs.

A is set to offer more cues on interest rates this week. Key U.S. inflation data is also on tap.

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Bitcoin price today: down to $55k as Mt Gox jitters rattle crypto By Investing.com - Investing.com

Sun 07 Jul 2024 5 min of reading by Fenelon L.

The bankruptcy of FTX could have unexpected effects on the crypto market. While the defunct exchange is preparing to redistribute $16 billion to its aggrieved customers, experts are predicting significant buying pressure on Bitcoin and Solana. This massive injection of liquidity could well energize a market that has been in decline for several months.

The distribution planned by FTX represents a considerable windfall for the crypto ecosystem. According to researcher Xremlin, a significant portion of these $16 billion should be reinvested in digital assets. Investors, already familiar with this market, could indeed be tempted to bet on cryptos again.

This massive arrival of liquidity occurs in a bearish market context. Bitcoin has lost more than 20% of its value over the past month, while Solana shows a 22% drop. The injection of new capital could therefore act as a catalyst and restart the bullish dynamic that investors have been eagerly awaiting.

Furthermore, this distribution could counterbalance the selling pressure exerted by the German government. They have indeed carried out significant sales of cryptocurrencies in recent weeks, weighing down prices.

The process of distributing FTX funds is set in a particular context. The key dates to remember are August 16, 2024, the deadline for creditor voting, and October 7, 2024, for the final approval of the liquidation plan.

If the schedule is respected, payments should begin by the end of the third quarter of 2024. This period coincides with the US elections, traditionally synonymous with increased volatility in the financial markets. The influx of liquidity from FTX could thus amplify price movements, particularly for Bitcoin and Solana.

The potential approval of a Solana ETF, following the application by Van Eck and 21Shares at the end of June, could also be an additional volatility factor. However, Gracy Chen, CEO of Bitget, remains cautious:

SOL still has some issues:

Considering these factors, excluding political elements, I think the probability that the application for a SOL ETF will be approved is low. Other tokens, like DOGE and SHIB, have relatively low market capitalizations and face high price volatility and potential market manipulation risks. Therefore, I think it is unlikely that the United States will launch other crypto ETFs in 2024.

In conclusion, the distribution of FTX funds could well mark a turning point for the crypto market. While Bitcoin and Solana are going through a difficult phase, this injection of fresh capital could breathe new life into the sector. Investors remain cautious, however, aware of the inherent volatility of these assets.

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Passionn par le Bitcoin, j'aime explorer les mandres de la blockchain et des cryptos et je partage mes dcouvertes avec la communaut. Mon rve est de vivre dans un monde o la vie prive et la libert financire sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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The Distribution of $16 Billion in Cash by FTX Could Propel Bitcoin and Solana - Cointribune EN

Most of the Bitcoin being repaid by defunct exchange Mt. Gox will likely be sold, threatening to cause more downside pressure on the price of Bitcoin.

The Mt. Gox repayments could add $8.2 billion worth of additional selling pressure to the Bitcoin (BTC) price, according to finance analyst Jacob King.

The analyst said that onchain movements already point to the fact that Mt. Goxs creditors have started selling. King wrote in a July 4 X post:

The gloomy prediction comes hours after Mt. Gox began repaying its debts in Bitcoin and Bitcoin Cash (BCH), the collapsed crypto exchange announced on July 5.

Related: Ether ETFs will only be a sidekick to Bitcoin ETFs Bloomberg analyst

The predictions raise concerns about the price of Bitcoin, which has been struggling to gain traction for over a month and is currently trading above the $60,000 psychological mark.

Bitcoin has been in a downtrend for the entire month of June, logging a nearly 18% loss during the second quarter of 2024.

However, the market selling by Mt. Goxs creditors could potentially take Bitcoin back into bear market territory, according to the analyst:

The Bitcoin price fell 3.9% in the 24 hours leading up to 10:17 am UTC on July 5 to trade at $55,250. The worlds first crypto is down over 10% on the weekly chart, according to CoinMarketCap data.

Despite the potential selling pressure, the repayments are a positive development for the industry and the defunct exchanges users. This sentiment is echoed by Mark Karpels, the former CEO of Mt. Gox, who highlighted this in a July 5 X post:

Despite the potential selling pressure, the repayments come as a positive for the industry and the exchanges defunct users, as also highlighted by Mark Karpels, the former CEO of Mt. Gox. He wrote in a July 5 X post:

Related: Justin Sun offers to buy German govts $2.3B Bitcoin stack to minimize market impact

More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors who have been waiting for over 10 years to recover their funds.

Considering that the Bitcoin price increased by over 8,500% during the past 10 years, the majority of defunct creditors will likely look to lock in some profits.

This is partly why King also expects around 99% of the creditors to sell their BTC. He wrote:

Magazine: Could a financial crisis end cryptos bull run?

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Up to 99% of Mt. Gox's $8.2B Bitcoin could be sold Analyst - Cointelegraph

Investing.com-- Bitcoin fell sharply in early Asian trade on Monday, reversing a modest rebound seen over the weekend and hitting an over four-month low on concerns over a flood of token supply from defunct crypto exchange Mt Gox.

The fell 5.8% in the past 24 hours to $54,601.7 by 21:28 ET (01:28 GMT), coming close to its weakest level since late-February. The token also broke below a key $55,000 support.

Bitcoin was nursing steep losses in the past two weeks amid concerns over token distributions by Mt Gox. The trustees of the exchange said last week that they had begun distributing tokens stolen during a 2014 hack back to creditors through a slew of exchanges, although they did not specify just how many tokens were being returned.

Wallets associated with the exchange were seen mobilizing about $9 billion worth of Bitcoin earlier this year.

Mt Gox has been a major point of contention for crypto markets, as traders speculated that given the massive increase in Bitcoins price over the past decade, receivers of the token would be likely to sell it on the open market, increasing the tokens supply.

Fears of such a scenario spurred widespread dumping of the token, with several Bitcoin whale wallets also coming online and mobilizing their holdings for sales.

Selling in Bitcoin spilled over into the broader crypto market, with world no.2 token sinking 7.3% to a two-month low.

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Bitcoin slides to $54k after Mt Gox begins distributions By Investing.com - Investing.com

Bitcoin (BTC) price has declined by more than 9.5% over the last three days after rallying to $64,000 at the start of the week.

Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin suddenly dropped from a high of $63,223 on July 2 to an intra-day low of $56,709 on July 4.

Bitcoins price is down 18% over the last 30 days, and its daily trading volume has dropped by 32% over the same period. However, several indicators hint at a deeper correction, making a swift recovery from these losses unlikely in the coming days.

Bitcoins ongoing downward trend is true to what experts at 10x Research predict could be the lower target for BTC price. They warn that this steep decline may just be the beginning, with Bitcoin potentially dropping further to $50,000.

Breaking the psychological level at $60,000 toward $50,000 marks a significant shift in market sentiment, which 10x Research attributes to buy flows drying up while sell flows are accelerating.

Markus Thielen, an analyst at 10x Research, suggests that the downward spiral was foreseeable, stating:

On June 24, Thielen shared the following chart projecting Bitcoins break out of its consolidation range and decline toward $50,000, citing the potential realization of a double-top pattern.

A double top pattern forms when the price reaches two similar peaks with a slight dip in between, maintaining support above a common line known as the neckline. This pattern typically resolves when the price breaks below the neckline, potentially falling by an amount equal to the distance between the peaks and the neckline.

As weve observed over the past three months, range trading is a complex phase, often marked by several false breakouts, Thielen wrote, adding:

In contrast to Thielen, Michael Van de Poppe, founder of MN Capital, has a slightly higher target for Bitcoin on the downside. Van de Poppe predicts Bitcoin will break below the May 1 low at $56,000 to collect the demand-side liquidity lying under it before declining to $52,809.

Bitcoins drop from an opening of $60,145 to an intraday low of $56,709 saw BTC break below the 200-day exponential moving average (EMA), a support it has enjoyed for over 10 months.

Commenting on the latest price action, popular trader Skew noted that Bitcoins price had crossed below its 200-day moving average (MA) for the first time in 10 months.

At the time of publication, the 200-day EMA was at $58,246, above the spot price.

The 200-day EMA is an important line of defense for Bitcoin, and losing it could expose BTC to further risks. Data from onchain data aggregator IntoTheBlock reveals that the path with the least resistance for Bitcoin is on the downside.

The In/Out of the Money Around Price (IOMAP) chart below shows that Bitcoin faces relatively stiff resistance on the upside compared to the support it enjoys on the downside.

Potential support is above $50,000, where approximately 264,360 BTC were previously bought by roughly 747,140 addresses. This suggests that Bitcoins downside could be capped here.

From a technical perspective, the Bitcoin price action has led to the formation of a classic bear flag pattern, a bearish continuation setup that forms after the price consolidates inside an up-sloping range following a sharp price decline.

Bear flags typically resolve after the price breaks below the lower trendline and drops by as much as the previous downtrends height. This puts the lower target for Bitcoin price at $49,200 levels last seen on Feb. 12.

Additionally, Bitcoins daily relative strength index is oversold at 29. This explains the intensity of the ongoing sell-off, boosting BTCs chances of reaching its bear flag target.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

The rest is here:

How low can the Bitcoin price go? - Cointelegraph