Bitcoin Below $59K: What's Going On?
07/04/2024 14:40
Bitcoin slumps as market braces for Mt. Gox repayments and traders face liquidations.
And Bitcoin keeps going down.
The world's biggest crypto dropped below $59,000 on Thursday, July 4, 2024, hitting lows we haven't seen since late April.
At one point, Bitcoin touched $57,874 on Coinbase before bouncing back a bit to $58,764. That's still a 3.4% drop over the past week.
It's not just Bitcoin experiencing the decline. Ethereum fell 4%, while Solana and Dogecoin took even bigger hits, dropping up to 8%.
So, what's behind this crypto slide?
A big part of it is the Mt. Gox situation. With the exchange set to start paying back creditors this month, there's worry about a flood of Bitcoin hitting the market.
Tom Lee from Fundstrat thinks there's a silver lining, though. He told CNBC, "[Mt. Gox] was a huge overhang for many years [but knowing] that is going to disappear in July, I think it’s a reason to expect a pretty sharp rebound in the second half"
The market shake-up has been rough on traders. Over $237.91M in long positions got wiped out in just 24 hours, according to Coinglass.
Source: Coinglass
Some see this dip as a chance to buy. "Buy the dip" chatter has doubled on social media in the last couple of days.
But not everyone's sure we've hit bottom yet. Kudret Ayyldr at GCM Investment thinks we might see Bitcoin drop to the $48,000-$50,000 range.
The mood in the crypto world is pretty tense right now. The Fear and Greed Index is sitting at 45 out of 100, firmly in the "Almost Fear" zone.
As for what's next, all eyes are on those Mt. Gox repayments. How that plays out could set the tone for Bitcoin's price in the weeks to come.