On July 3rd, the price of Bitcoin dropped below the $60,000 mark—the Mt. Gox exchange might begin releasing $9 billion worth of BTC value.
Since June, Bitcoin’s price has been on a downward trend, falling by nearly 18% in the second quarter of 2024. Investors have been eagerly anticipating a breakthrough above the $70,000 mark to pave the way for a new all-time high, but losing the current support at $60,000 could imply a longer price adjustment.
Could Mt. Gox be starting to repay creditors? The drop below $60,000 may be due to Mt. Gox starting to repay creditor assets in early July.
According to Charles Edwards, founder of the digital asset hedge fund Capriole Investments, who shared a chart depicting the last token transfer amounts of Bitcoin over the past 7 to 10 years, the now defunct cryptocurrency exchange may have already begun repaying creditors.
Edwards wrote in a post on July 2nd that about 127,000 Mt. Gox creditors are owed over $9.4 billion worth of Bitcoin, with these creditors having waited over a decade to reclaim their funds. This could mean that many investors will cash out after over 10 years without profits.
However, the $9 billion from Mt. Gox may be absorbed by institutional funds, flowing into US-based spot Bitcoin exchange-traded funds (ETFs). Dune states that these ETFs have accumulated over $52.5 billion worth of Bitcoin since their launch in January this year.
Have Bitcoin whales caused the drop below $60,000? Whales or large Bitcoin entities may lead to the Bitcoin price dropping below crucial psychological levels.
An unidentified whale sold $180 million worth of Bitcoin in three minutes—a significant amount to be sold at market value in such a short time frame.
According to a post on July 3rd, industry observer Zaheer discovered this major sell-off based on the following chart.
As per Lookonchain, another unidentified whale deposited 1,723 Bitcoin to Binance in the past 24 hours, worth over $168 million, also contributing to the price drop.
Transferring Bitcoin whales to the world’s largest cryptocurrency exchanges indicates that these entities are seeking to sell and lock in profits.