Bitcoin (BTC) Price Prediction: Will the Market Rebound Despite Mt. Gox Repayments?

The heightened crowd fear could lead to a sudden Bitcoin and altcoin price rebound in the near term despite the ongoing Mt. Gox repayments.

Despite the ongoing repayments from Mt. Gox, a crowd's heightened fear could lead to a sudden rebound in Bitcoin and altcoin prices in the near term.

The total cryptocurrency market capitalization increased by over 3% in the past 24 hours. Bitcoin (BTC) led the market to hover around $2.21 trillion on Tuesday during the London session. Bitcoin price has formed a possible reversal pattern, which may yield a fresh bull run in the upcoming sessions.

Moreover, every time the crowd has depicted fear, uncertainty, and doubts (FUD), Bitcoin price has historically rebounded.

Bitcoin's Fear and Greed Index Dropped Further, Signaling More Fear

German Government Changes Bitcoin (BTC) Trading Tactics

Bitcoin price has faced immense pressure recently due to heightened on-chain activities from whale addresses. In the past 20 days, a Bitcoin address linked to the German government has offloaded over 23K Bitcoins and currently holds about 27,461 coins. On Monday, the German government surprised the entire industry by transferring around 19,521 coins, valued at about $1 billion, to wallets of several over-the-counter (OTC) firms, including Flow Traders and Cumberland.

However, the narrative changed after the German government received 3,673 Bitcoins from centralized exchanges.

Mt. Gox Distributions Fades with Rising Demand for Spot BTC ETFs

The cryptocurrency market also faced bearish sentiments due to Mt. Gox's $9 billion repayment. However, some analysts believe that the Mt. Gox fund distribution will gradually fade away in the upcoming sessions as most recipients are already long-term holders.

As reported by Coinspeaker, the US spot Bitcoin ETFs registered cash inflows of nearly $300 million on Monday, led by BlackRock's IBIT. Notably, none of the US spot Bitcoin ETFs on Monday registered net cash outflows, indicating an increasing demand for Bitcoin by institutional investors.

The demand for Bitcoin among institutional investors is likely driven by the upcoming interest rate cut in the midst of the general elections. Additionally, the Fed has remained dovish recently as inflation continues to decline.

Midterm BTC Price Expectations

Despite the reduced inflation caused by the recent fourth halving event, Bitcoin price has been consolidating for the past four months. From a technical perspective, to invalidate further capitulation, Bitcoin price needs to consistently close above the 200-day Moving Average (MA) in the upcoming weeks.

Currently, Bitcoin price continues to trade around the lower boundary of a falling channel that started four months ago. The daily Relative Strength Index (RSI) has been trading around oversold levels for the past few weeks, indicating a possible reversal in the near term.

According to an analysis by Spot On Chain, Bitcoin price is on track to reach $100K by the end of this year.

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