Bitcoin (BTC) Price Tumbles to $60K as Skeptics Brace for a Steeper Fall in July
- WBOYOriginal
- 2024-07-12 17:33:30812browse
After showing glimpses of promise at the start of July, Bitcoin's (BTC) price slumped back to the $60K mark with other cryptocurrencies nursing declines of their own.
Bitcoin (BTC) price action took a downturn on Monday, slipping back to the $60K mark as several major cryptocurrencies nursed declines of their own.
A glance at 24-hour charts showed the apex cryptocurrency registering a loss of almost 5%, to settle at $60K as traders kept a close watch for any signs of further selling pressure.
While the $60K level could easily be considered a potential support zone for BTC, skeptics were preparing themselves for a steeper fall in the upcoming days.
Earlier in June, BTC had managed to surpass expectations by hovering around the $63K mark, riding on the back of positive macro liquidity changes. The charts were showing promise, with Rekt Capital noting on Twitter that the asset could climb as high as $71K, following a correlation with USD liquidity.
“Biggest Fed Net Liquidity rate-of-change spike in 15 months,” noted Cole Garner, a market analyst. “Last time that happened, bitcoin rose 40% in one week. Not assuming a repeat, but you love to see it.”
However, the positive sentiments were short-lived, following the steep decline of the asset over 24 hours. Several analysts attempted to rationalize the decline with a cross-section pointing to the upcoming release of Mt. Gox’s bitcoins, valued at $9 billion, to creditors.
According to chatter on Cryptoville, the creditors, upon receiving their assets, would begin a selling spree that was expected to drive prices down in June. Proponents of this theory cited the massive gains made by BTC since the 2014 hack as a reason for a mass selloff, highlighting the recent payout to creditors by Gemini.
Apart from Mt. Gox, the uncertainty surrounding US interest rates had also put pressure on BTC, with the Federal Reserve set to make an official statement on Wednesday.
Several on-chain indicators, particularly the net unrealized profit and loss (NUPL) and the assets Adjusted Spent Output Profit Ratio (SOPA), were predicting a gloomy July for BTC.
Bitcoin’s decline appeared to be dragging down the rest of the cryptocurrency market, with leading altcoins also registering losses. During the same 24-hour period, Ethereum (ETH) dropped by 3%, while BCH and LTC incurred similar losses to the dismay of investors.
The bloodbath left the total virtual currency market capitalization at $2.26 trillion but, despite the declining metrics, daily trading volumes had increased by 6.16% over the last day. The biggest winners seemed to be altcoins that had managed to hold their ground by trading sideways, including SOL and XRP, assets basking in their recent regulatory and legal victories.
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