Mt. Gox moved 47,000 BTC to an unknown wallet, causing Bitcoin to drop below $55,000 for the first time since February. This significant transfer has sparked concerns that Bitcoin could decline further, with experts predicting a potential fall to $50,000 as bearish momentum strengthens. Increased inflows to exchanges are also suggesting potential selling pressure.
Despite this decline, 75% of Bitcoin holders remain in profit. Additionally, the derivatives market is showing heightened activity and interest, indicating continued engagement from traders.
Bitcoin Plunges Below $55K After Mt. Gox Transfers 47,000 BTC
Mt. Gox has moved over 47,000 BTC from its cold wallet to an unknown wallet, causing Bitcoin to plunge significantly. For the first time since February, Bitcoin has dipped below $55,000. This dramatic drop led to over $110 million in liquidations within just an hour.
Source: Arkham Intelligence
The transaction by Mt. Gox, valued at approximately $2.71 billion based on current prices, is the first major Bitcoin movement by the defunct exchange since May. On June 24, Mt. Gox trustee Nobuaki Kobayashi announced that all necessary steps had been completed to begin issuing repayments to creditors starting in July. This announcement comes after a long wait, with creditors having anticipated compensation since the exchange’s collapse in 2014.
Experts at 10x Research have indicated that Bitcoin’s sharp decline might be just the beginning, with predictions suggesting it could drop further to $50,000. Markus Thielen of 10x Research noted, “Our data from early June already hinted at an overbought market ripe for correction.”
Bitcoin’s Bearish Trend Grows as Selling Pressure Rises
Current market movements indicate that Bitcoin’s bearish momentum is just beginning, with potential for further declines. On-chain data reveals that bears have firmly taken control. Despite this, 75% of Bitcoin holders remain in profit, 7% are breaking even, and 17% are at a loss, showing that most investors are still in the green despite the recent drop.
Source: IntoTheBlock
Over the past week, inflows to exchanges have totaled $6.79 billion, while outflows have reached $5.94 billion. The higher inflows suggest that more BTC is being moved to exchanges, likely in preparation for selling. Additionally, the derivatives market has seen a 46.20% increase in volume, indicating heightened activity and interest. However, a 6.66% decrease in open interest suggests some positions are being closed, which could be a sign of profit-taking or loss-cutting.
Source: IntoTheBlock
Support levels to monitor include $53,000 and $50,000. If Bitcoin falls below these levels, the next major support could be around $48,000. Resistance levels are near $56,000 and $58,000, with a break above these levels potentially triggering a reversal or stabilization.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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