Bitcoin Falls to Four-Month Low as Mt Gox Exchange Creditor Return Looms
- 王林Original
- 2024-07-10 16:26:50479browse
Bitcoin sank to a four-month low yesterday breaking below technical supports as traders anticipated the dumping of long-lost tokens from a defunct Japanese exchange and further selling by momentum spooked leveraged players. The price of the world's largest cryptocurrency slid more than eight per cent to USD53,523
Bitcoin sank to a four-month low on Friday (July 1), breaking below technical supports as traders anticipated the dumping of long-lost tokens from a defunct Japanese exchange and further selling by momentum spooked leveraged players.
The world’s largest cryptocurrency slid more than eight per cent to USD53,523, below chart support around USD55,000 and its lowest since late February.
It has lost some 12 per cent for the week so far, even as many of the risk-sensitive assets it tends to track, such as the Nasdaq, have gained.
Ether slid nine per cent to USD2,841, an over two-month low.
Bitcoin sank as traders awaited the return of tokens from Mt Gox and selling by momentum players, while ether fell to an over two-month low.
Media reports said Mt Gox, the world’s leading exchange for cryptocurrencies before it collapsed a decade ago, may start returning bitcoin to creditors, who are seen as likely sellers since the token’s worth was only hundreds of dollars in 2014.
“The selling pressure is still related to creditor selling from the failed Mt Gox exchange,” said market analyst at IG Tony Sycamore.
“However, the acceleration to the downside suggests the market is trying to get ahead of the creditor flows.”
Analysts have also pointed to worries over the possibility of United States (US) President Joe Biden being replaced as the Democrats’ presidential nominee by someone less pro-crypto after a shaky debate performance with rival candidate Donald Trump.
Bitcoin had a strong start to the year after the launch of exchange-traded funds in the US, propelling it to a record USD73,803.25 in mid-March. But it has since struggled.
“With an asset that has been range-bound for quite a while and recently in the lower end of that range, there are plenty of margined positions,” said Justin D’Anethan at digital assets market maker Keyrock, which is forced to sell as prices fall.
More than USD800 million worth of bullish crypto bets were liquidated in the past three days, one of the heaviest such liquidations since April, Coinglass data show.
“Poor weekend liquidity will exacerbate any moves triggered by liquidations, even small ones,” said co-founder of digital-asset derivatives liquidity provider Orbit Markets Caroline Mauron. In the meantime, the return of US investors from the July 4 holiday should help bring some stability, she added.
The operators of the power-hungry computers that underpin the Bitcoin blockchain are continuing to absorb the financial hit of April’s so-called halving, which curbed the new tokens they receive for the work they do. One response from these Bitcoin miners is to sell some of their inventory of tokens.
“The USD51,000 to USD52,000 range is crucial as a lot of Bitcoin miners are reaching their break-even point for profitable mining,” said head of trading at market making and algorithmic trading firm Auros Le Shi.
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