And Bitcoin keeps falling.
The world’s largest cryptocurrency fell below $59,000 on Thursday, July 4, 2024, a low not seen since late April.
At one point, Bitcoin hit $57,874 on Coinbase before rebounding a bit to $58,764. That’s still down 3.4% over the past week.
It’s not just Bitcoin that’s feeling the pinch. Ethereum dropped 4%, while Solana and Dogecoin took even bigger hits, dropping up to 8%.
What’s Behind This Crypto Drop?
A big part of it is the situation with Mt. Gox. As the exchange begins paying back creditors this month, there are concerns about a flood of Bitcoin hitting the market.
Fundstrat’s Tom Lee thinks there is a silver lining. He told CNBC: “[Mt. Gox] was a huge overhang for years [but knowing] that will disappear in July, I think it is a reason to expect a decent rebound in the second half”
The market turmoil was tough on traders, with over $237.91M in long positions wiped out in just 24 hours, according to Coinglass.
Source: Coinglass
Some see this dip as an opportunity to buy. The “Buy the dip” talk has doubled on social media in recent days.
But not everyone is certain that we have reached the bottom yet. Kudret Ayyldr of GCM Investment thinks that we may see Bitcoin drop to the $48,000-$50,000 range.
The mood in the crypto world is quite tense at the moment. The Fear and Greed Index is at 45 out of 100, firmly in the “Almost Fear” zone.
As for what happens next, all eyes are on those Mt. Gox redemptions. How that plays out could set the tone for Bitcoin’s price in the weeks ahead.
