Bitcoin Price Plunges Below $60k in Latest Sell-Off
Bitcoin’s price has taken a hit, dropping by more than 5% to fall below the $60,000 mark. This decline comes after a day of significant selling pressure in the market.
The downward trend in Bitcoin’s price started after reaching highs of $71,974 on June 7. Since then, the cryptocurrency has been on a downward trajectory. Today’s drop below $60k marks the first time it has fallen below this level since bouncing back above it in early May.
One of the factors contributing to this sell-off pressure is the news about Mt. Gox, a bankrupt crypto exchange that was hacked in 2014. The exchange is set to distribute nearly $9 billion in BTC to its creditors starting in July. This influx of Bitcoin into the market could potentially lead to more selling pressure as some recipients may choose to sell for profit.
The historical context of the Mt. Gox hack is significant, as the price of Bitcoin was around $40 when the hack occurred. The current price of Bitcoin is significantly higher, which could incentivize some creditors to sell their BTC.
As a result of these developments, holders of Bitcoin are concerned about a potential bearish trend and have started to sell off their holdings. This has contributed to the price of Bitcoin dropping below $60,000.
Julio Moreno, the head of research at CryptoQuant, commented on the situation, noting that the lack of demand growth or momentum from traders, whales, and ETFs is a key factor in the current price movements of Bitcoin.
The last time Bitcoin fell below $60k, it found support at around $56,500. Moreno believes that this level could once again serve as a key support level for the cryptocurrency.
In conclusion, the recent sell-off in Bitcoin’s price below $60k can be attributed to various factors, including the news about Mt. Gox and the overall market sentiment. Investors will be closely watching to see how Bitcoin reacts in the coming days and whether it can find support at the $56,500 level once again.