Technology

Why Is Bitcoin Price Going Down Today? – Crypto News

Published

12 months ago

July 24, 2024

Dripp

Bitcoin price has moved downwards following recent industry-related events as market sentiments flipped. The price of the asset fell nearly 1% in the last 24 hours, stunting weekly growth to 1.6% after a previous recovery. At press time, BTC trades at $66,418 with liquidations recorded in the past trading day amid spot Ethereum ETF debut.

Bitcoin Price Hindered By Mt Gox Repayments

Bitcoin price which notched a rebound to reclaim $66,000 after the German asset sales is now in a similar situation of low sentiments. This is a result of repayments announced by a bankrupt crypto exchange liquidator in June. Weeks after the disclosure, payments have kicked off with Mt Gox on-chain BTC movements dominating industry spaces.

On July 24, Mt Gox moved 37.477K BTC valued over $3 billion from its holdings to address as flagged by on-chain analytics firm Arkham Intelligence. On July 23, Kraken announced it had started repayment to the creditors after it received 48,641 BTC from the Mt Gox Rehabilitation Trustee. In total, the bankrupt exchange will distribute 140,000 BTC to creditors, sparking major concerns for asset holders.

The fear driving down sentiment stems from the potential asset sale which will impact the market. Creditors dealing with the decade-long asset appear dicey because of the growth in the asset price. Increased adoption coupled with institutional demand after the approval of spot Bitcoin ETFs took the price to an all-time high above $73,000. Despite the price correction to $66k, some creditors have expressed the desire to sell their assets while others will hold on to the same.

Hong Kong BTC Inverse Product Heightens Liquidations

Bitcoin price is also down because of Hong Kong’s first BTC futures inverse product. The product offers returns on the decline of assets and reflects the city’s efforts to diversify crypto-based products. This can increase selling pressures on the asset based on the activity of the product’s investors. both factors resulted in increased Bitcoin liquidations.

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Is a Rebound On The Cards?

Just like the aftermath of the German sales, many industry commentators believe a rebound is possible due to certain factors. Institutional investor activity can push Bitcoin price above the resistance as more inflows are recorded in the market. Similar positive indications after the German sales are also expected as some traders pitch institutions to purchase assets directly from creditors.

Glassnode founders, Jan Happel and Yan Alleman known as Negentropic wrote on X (formerly Twitter) about network fundamentals being positive despite repayments. “June saw Bitcoin prices decline due to German liquidations and Mt. Gox movements. However, the Bitcoin Fundamental Index (BFI) started trending upwards, indicating stronger network fundamentals.”

The listing of spot Ethereum ETFs in the United States will attract participants as a new investment window opens up for traditional players for the general market . Anticipated interest rate cuts by the Federal Reserve has been tipped to usher in the next market upswing trajectory.

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