Bitcoin market falls to four-month low
Business: Business, Bitcoin Price: On the morning of July 5, bitcoin fell more than 8 per cent to $53,523, which traders said was below chart support of $55,000, and at its four-month low since February 2024, Reuters reported. In addition, the world’s largest cryptocurrency in terms of market cap lost some of its 12 per cent weekly gain, while world markets showed signs of green. Apart from bitcoin, ether was also down 9 per cent – a two-month low for crypto. Other smaller coins such as cardano and XRP also lost more than 10 per cent, according to Bloomberg. Traders had anticipated a dumping of long-lost tokens from Mt Gox, a defunct Japanese
Crypto Exchanges crypto exchange, which media reports said would lead to bitcoin being returned to creditors and further “panic” selling by leveraged players. Mt Gox collapsed in 2014. There are fears that the $8 billion worth of tokens being released in stages will spur more selling. Bloomberg’s report, citing Arkham Intelligence, said wallets linked to Mt Gox alone moved $2.7 billion worth of its tokens on July 5.
The selling pressure is still related to creditors’ sales from the failed Mt Gox exchange. However, the sharp downward move suggests the market is trying to get ahead of the flow of creditors,” Tony Sycamore, a market analyst at IG, told Reuters. There is also uncertainty over the Democrats bringing in someone less friendly to crypto to replace Joe Biden as their presidential candidate. The initial boost from US-based bitcoin exchange-traded funds (ETFs) also appears to be fading, the Reuters report said.
Bitcoin ETFs Bitcoin hit a record high of $73,803.25 in March, thanks to bitcoin ETFs. Regarding the potential upside, Stefan von Heinisch, head of trading at OSL SG Pte, told Bloomberg that the crypto market “needs a more dovish stance on monetary policy from the Federal Reserve” and “one to two rate cuts, coupled with Fed balance sheet expansion, are the two key elements that crypto is really waiting for.” The Bloomberg report also said that investors are keeping a close watch on the Fed to gauge its potential move. We are waiting for the figures for .
