Bitcoin (BTC) Price Registers Heightened Volatility in the Wake of Mt.Gox Repayment

In the wake of the much anticipated Mt.Gox repayment that began on Friday, Bitcoin (BTC) price registered heightened volatility.

After largely registering a downtrend in the past 24 hours, Bitcoin price seems to be recovering from the heavy crypto liquidations and fear that gripped the market following the much anticipated Mt.Gox repayment. While BTC price dropped to as low as $53,898 on Friday, the coin has since rebounded above the crucial support level of around $56k at press time.

The heightened Bitcoin volatility caused a significant spike in fear. Moreover, the fear and greed index dropped from 44, indicating neutral territory, to around 29, indicating fear, in the past 24 hours. This occurred as more whale traders, led by the German government, continued to dump in the secondary market.

Bitcoin to Benefit from the Collapse of US Dollar According to Chris Wood, the Chief Strategist of New York-based Jefferies investment bank, the mainstream adoption of Bitcoin is bound to happen amid the failing fiat currencies.

Wood recently informed investors through a note that the allocation of Bitcoin in investment portfolios should be viewed as long-term insurance and not as a short-term trade. Wood stated, “The allocation to Bitcoin was introduced because it represents a legitimate alternative for risk-averse capital looking for a store of value, amidst the accumulating evidence over the past two decades and more of policies of currency debasement in the G7 world.”

According to Wood, the mainstream adoption of Bitcoin against the US dollar and other fiat currencies is largely propelled by poor monetary policies. As Crypto News Flash has covered on several occasions, the notable rise of the BRICS movement has been challenging the US dollar’s global dominance, which is bolstered by the G7 member states.

Gradually, more global enterprises and investors are adopting Bitcoin and other crypto assets for seamless cross-border payments. As a result, the global US dollar dominance is set to decline in the coming years.

Will the Bulls Market Again? According to a popular crypto analyst known as PlanB, the Bitcoin bull market is on time despite the increase in midterm pessimism. A Matrixport analyst, who argued that the Bitcoin rally will continue as the US general elections approach, took a similar stance.

Additionally, the Fed is expected to cut its benchmark interest rate later this year as inflation gradually drops. With the fourth Bitcoin halving impact yet to be fully priced in, it is safe to assume that the crypto bull rally is not over and will soon resume.

Midterm BTC Price Expectations From a technical standpoint, Bitcoin price has been consolidating in the past four months after reaching its all-time high (ATH) of around $73,000. According to a popular crypto analyst known as Mustache on the X platform, Bitcoin price will likely rebound to a new ATH in the coming weeks.

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