Bitcoin (BTC) Price Slumps Below $61,000 as Mt. Gox Repayments Add to Selling Pressure

Bitcoin (BTC) continued to reel under pressure after falling below $61,000 causing more than $122 million in long positions to be wiped out.

Bitcoin (BTC) price continued to face pressure after dropping below $61,000, leading to the liquidation of more than $122 million in long positions. This large-scale liquidation hinted at the possibility of a further decline below the $60,000 level, with BTC trading at $60,750 at press time.

According to data from CoinGlass, over $122 million were liquidated from leveraged long Bitcoin positions in the 24 hours leading up to 1:25 PM UTC on June 24. These liquidations occurred as Bitcoin's price dropped by over 5% in a single day, briefly dipping below the $61,000 mark.

Mt. Gox Repayments Add to Selling Pressure

This price decline coincides with news from the bankrupt crypto exchange Mt. Gox, which announced that it will begin processing repayments to its users. Notably, over $9.4 billion worth of Bitcoin is owed to around 127,000 Mt. Gox creditors.

The influx of Bitcoin from these repayments is expected to introduce substantial selling pressure, potentially impacting its price. As noted by Eric Balchunas, a senior ETF analyst at Bloomberg, this could offset recent ETF inflows.

Moreover, on June 19, a wallet flagged by the German government sold nearly 6,500 BTC, adding to the selling pressure. This wallet has held around 50,000 BTC since February 2024, valued at over $3 billion at Bitcoin's current price above $61,000.

Bitcoin RSI Shows Oversold Conditions

As Bitcoin declined to the $61K level, its RSI indicated that the cryptocurrency was entering 'oversold territory.' On the daily chart, the RSI of Bitcoin reached as low as 28, marking the most oversold level since it was trading at $26,000 in August 2023.

The combined effect of leveraged position liquidations, Mt. Gox repayments, and increased selling pressure from large holders is likely to continue influencing Bitcoin's price movements in the coming days.

In other crypto news, Metaplanet Inc. is set to purchase $6.3 million in Bitcoin through a bond issuance.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-price-slumps-mt-gox-repayments-add-selling-pressure.html

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