On July 3, Bitcoin‘s price dipped below the significant $60,000 mark, sparking concerns of extended price consolidation as the potential release of $9 billion in BTC from Mt. Gox looms.
Bitcoin dropped 4.2% in the 24 hours preceding 10:33 am UTC on July 3, reaching a low of $59,600. According to CoinMarketCap, the cryptocurrency is down 1.8% over the week.
Since June, Bitcoin has been in a downtrend, marking an almost 18% decline in the second quarter of 2024.
Investors have been eagerly awaiting a breakout above $70,000 to trigger new all-time highs, but falling below $60,000 could signal a prolonged price correction.
The potential start of repayments to Mt. Gox creditors might be contributing to Bitcoin’s decline.
The defunct exchange may have begun repaying creditors, as suggested by a Bitcoin transfer volume chart for tokens last moved between seven to ten years ago, shared by Charles Edwards, founder of Capriole Investments. Edwards noted in a July 2 X post:
“The entire history of this chart has disappeared because an enormous sum of Bitcoin moved on-chain, 10X more than the previous highs. $9B.
“But by who? Mt. Gox. It looks like those distributions really are coming.”
Mt. Gox owes over $9.4 billion in Bitcoin to about 127,000 creditors who have waited for over a decade to recover their funds. Many investors might cash out after years of untouched profits.
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However, the $9 billion from Mt. Gox could be offset by institutional inflows to U.S.-based spot Bitcoin exchange-traded funds (ETFs).
Since their January launch, these ETFs have amassed over $52.5 billion in BTC, according to Dune.
Questions arise about whether Bitcoin whales influenced the price drop below $60,000.
One large Bitcoin holder sold $180 million worth of Bitcoin within three minutes, an unusually high amount for such a brief period. Popular industry watcher Zaheer highlighted this large sale in a July 3 X post.
Further contributing to the decline, another unknown whale transferred 1,723 BTC worth over $168 million to Binance within the past 24 hours, according to Lookonchain. This transfer suggests the whale might be looking to sell and lock in profits.
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