The price of Bitcoin plunged as much as 8% to its lowest level since February to trade at a $53,763.63 low amid a cryptocurrency market sell-off that was attributed to a confluence of factors.
Waning investor appetite for spot Bitcoin exchange-traded funds (ETFs), signs of government disposals of seized crypto tokens, and the uncertain impact of U.S. political developments were all cited as contributing to the bearish sentiment.
Adding to the uncertainty, administrators of the defunct Mt. Gox exchange are gradually returning a massive cache of Bitcoin to creditors and some market speculators believe the $8 billion in BTC being returned to creditors could flood the market. The sell-off came after Arkham Intelligence flagged a Mt. Gox-linked wallet moving $2.7 billion worth of the cryptocurrency.
Meanwhile, the MSCI World Index, a broad gauge of global equities, remains near record highs, even as Bitcoin’s price plummets. Investors are awaiting US jobs data for clues about the Federal Reserve’s policy directions, with some analysts suggesting interest rate cuts could help bolster crypto prices.
According to data from Coinglass, over $800 million worth of bullish crypto positions have been liquidated in the past three days, marking one of the heaviest liquidation periods since April.
Meanwhile, Bitcoin miners are continuing to absorb the financial hit of the cryptocurrency’s halving event in April, which cut coinbase rewards earned per block in half. One response miners have been having is to sell the coins they mine to stay afloat. According to Le Shi, head of trading at market maker and algorithmic trading firm Auros, the $51,000 to $52,000 range is critical as “a lot of Bitcoin miners are reaching their break-even point for profitable mining.”
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/jul/05/
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