Bitcoin was hit the hardest on Jun 24, 2024, and fell below $59000 amid volatile and uncertain cryptocurrency market trends. While many predict the downfall as a quick market response to Mt. Gox’s announcement of repaying the creditors in Bitcoin and Bitcoin Cash, experts reveal ETF outflow, miners’ sentiments, the German government moving Bitcoin to popular exchanges, and Federal Reserve rate cuts affecting the price fluctuation considerably. Even though this leading cryptocurrency has always outperformed expectations, investors are left confused about whether they should “buy the dip” or “sell their lot.”
BTC reached its all-time high in March 2024, just two months after the Bitcoin ETF approval. Since then, it has been struggling to maintain the value close to $70,000. Mt. Gox was hacked back in 2014 for about 70,000 Bitcoins. Mt. Gox’s trustee, Nobuaki Kobayashi, announced on X that the Mt. Gox would start repayment of $9 billion BTC to investors between July 2024 and October 2024. It is speculated that the investors would sell the asset, increasing the market supply of the cryptocurrency, and thereby, the price would drop. Besides, Bitcoin ETFs witnessed $174 million of outflows following the news, possibly leading to a BTC price correction.
Contributing to the increased market supply and bearish trend, Germany’s government has deposited about 400 Bitcoins on popular exchanges Coinbase and Kraken following the transfer of 1700 BTC by the same agency. Another prominent reason could be that Bitcoin miners may sell their BTC because the rewards are cut in half following Bitcoin’s halving.
When writing this piece, Bitcoin was priced at $61,180.37 and had a 24-hour trading volume of $37 billion. The Fear and Greed Index for Bitcoin is 30 at the moment, indicating that investors are worried about the drop in the world’s leading cryptocurrency and, at the same time, indicating a buying opportunity. A similar index was last experienced in September 2023.
Analysts believe that the price may drop to $50,000 in the future, leaving investors more fearful. However, considering the reliability of Bitcoin so far and its long-term investment, the king of the crypto world is expected to make a strong comeback.
Disclaimer: The sole purpose of this article is to analyze the market trends and updates with no intention of producing any investment advice to professional or novice investors. Do your own research before making any investments.