The Bitcoin (BTC), price has fallen by as much as 4.8% in the past 24 hours. It is now at a record low of $61,601 after having traded above $64,000 only a day before. A combination of factors can explain this decline, such as the Mt. The Mt.
#1 Mt. Gox News Shakes Market Confusion
Bitcoins’ sudden, steep drop from $62,900 down to $60,601 coincided with the release of a recent announcement by the trustees at the now-defunct Bitcoin Exchange, Mt. Gox. Gox, the exchange at the heart of one the largest and earliest Bitcoin thefts in history, announced that it will begin paying victims with the assets stolen from a hacking incident back in 2014. This is scheduled to happen by July 2024.
Nobuaki Kobayashi is the trustee for the Bitcoin Rehabilitation Program. According to him, repayments will be made in Bitcoin Cash and Bitcoin (BTC), and the process should begin early July. “The Rehabilitation Trustee has been preparing to make repayments in Bitcoin and Bitcoin Cash under the Rehabilitation Plan […] The repayments will be made from the beginning of July 2024,” You can also find out more about the following: announcement reads.
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The market reacted negatively to this news, due to concerns about an oversupply of assets from the beneficiaries who may be selling their investments that have appreciated significantly since they first invested before 2013. The trustee transferred over 140.000 BTC in May 2023. This is worth about $9 billion.
Analysts and traders closely tracked this transaction as it marked the first time in 5 years that funds had been moved. Bitcoins prices fell instantly. as speculations The fear of a possible flood on the market with these repaid circulating coins began to take hold.
#2 Record Liquidations Of Long Positions
The liquidation of BTC long positions was also a significant factor in pushing the price down. According to the most recent data Coinglass has liquidated a whopping $85.4 million in long positions. The largest ever liquidation was on April 30th and May 1st, when more than $195,000,000 ($95,000,000 and $100,000,000 respectively) worth of long positions were liquidated. This coincided with a price decline of 12.5% over these two days.
These liquidations happen when the market price is equal to the liquidation prices of leveraged position, which triggers the automatic selling offs in order to compensate for the losses. The price then falls further. This cascade affect contributes to price drops and market volatility.
The ongoing capitulation of miners adds to the pressure on sellers
Miner capitulation continues to be the third factor that has a significant impact on Bitcoin’s price. A miner capitulation is a scenario whereby miners, especially those who operate with marginal efficiency begin to sell their BTC in order to cover operating costs because of unprofitability. The price of Bitcoin can be pushed down by this phase, as the amount of Bitcoin available on the market increases.
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The following are some of the ways to get in touch with us. reported NewsBTC’s Willy Woo has been a prominent crypto analyst who, along with others, have highlighted that the miner surrender is an important phase to watch, especially after the Bitcoin halving Even events which reduce the miner’s rewards by half will affect their profitability. Woo recently noted that recovery from capitulations is historically slow, and closely tied to the revival of mining activity and hash rate.
Jelle Crypto Expert, Speaking via X highlighted Today, the nature of capitulation is still ongoing. “Hash Ribbons are showing that miner capitulation is ongoing — exactly what you want to see post-halving. Generally speaking, the market starts rallying once that capitulation phase comes to an end.”
BTC is currently trading for $61,241.
Chart from TradingView.com, iStock image.
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Source: www.newsbtc.com