fxs_header_sponsor_anchor

Bitcoin price holds around $64,000 amid Mt. Gox funds movement

|ByManish Chhetri

  • Mt. Gox moved $3.1 billion worth of BTC on Wednesday.
  • Grayscale Mini BTC ETF receives a $1.8 billion inflow on Wednesday.
  • The FOMC decided to hold US interest rates steady, resulting in a BTC price decline.
  • Bitcoin Spot ETF registered slight outflows of $17.70 million on Wednesday. 

Bitcoin’s (BTC) price stabilizes at around $64,000 on Thursday after falling short of closing above $70,000 at the beginning of the week. On Wednesday, Mt. Gox moved $3.1 billion worth of BTC, Grayscale's Mini BTC ETF received a $1.8 billion inflow, and the Bitcoin Spot ETF experienced slight outflows of $17.70 million. The FOMC's decision to hold US interest rates steady also contributed to the decline in Bitcoin’s price.

 

Daily digest market movers: Bitcoin drops as US interest rates steady

  • According to Arkham Intelligence, Mt. Gox wallet moved $3.1 billion worth of BTC on Wednesday. Mt. Gox addresses recently transferred 33,960 BTC, valued at $2.25 billion, to new addresses, which are highly likely to be associated with BitGo:

bc1q26tsxc0ge7phvcr2kyczexqf5pcj8rk79cqk90h34c30dn9dskeq3gmw3f

bc1q48a5tjhdjtkfv8zv6tj68767h8lgep9dpx0emrkx0yhhmum7wscs95ft36

BitGo is the 5th and final custodian working with the Mt. Gox Trustee to return funds to creditors.

After these transfers, Mt. Gox now holds 46,160 BTC worth $3.06 billion, including the new Mt. Gox address:

1MUQEiiQEckiBkrQswqq225nQTRWJ5SXZZ

These ongoing transfers are likely fueling FUD (Fear, Uncertainty, Doubt) among traders, contributing to Bitcoin's recent price decline.

  • Arkham Intelligence shows that Grayscale moved $1.8 billion in BTC through Coinbase Prime to their Mini Bitcoin Trust ETF sourced from the GBTC Bitcoin Trust on Wednesday.
  • The Mini Trust began trading on Wednesday  – the ticker is Bitcoin $BTC.
  • All GBTC investors are entitled to one share of BTC for every share of GBTC that they own.
  • Santiment's data shows that the FOMC's decision to keep US interest rates steady on Wednesday led to an initial decline in crypto prices, as traders had hoped for a rate cut for the first time since March 15, 2020. Once the initial emotional sell-offs subside, markets are expected to stabilize, though a significant market-wide rebound could occur if aggressive whale accumulation and heightened crowd negativity both occur.

  • According to Coinglass, Bitcoin Spot ETF registered slight outflows of $17.70 million on Wednesday. Monitoring these ETFs' net flow data is crucial for understanding market dynamics and investor sentiment. The combined Bitcoin reserves held by the 11 US spot Bitcoin ETFs stand at $50.38 billion.

Bitcoin Spot ETF chart

 

Technical analysis: BTC price breaks below the daily support level 

Bitcoin price was rejected at the weekly resistance level of $69,648 on Monday and declined 2.7% the following two days to close below the daily support at $64,913 on Wednesday.

At the time of writing, BTC trades slightly lower by 0.64% at $64,229 on Thursday.

If BTC continues to decline and closes below the ascending trendline and the 50% Fibonacci retracement level at $62,736 (drawn from a swing high of $71,997 on June 7 to a swing low of $53,475 on July 5), BTC could crash 10% to retest its daily low of $56,405 from July 12.

The Relative Strength Index (RSI) on the daily chart has briefly dropped below the 50 neutral level, and the Awesome Oscillator (AO) is nearing a similar decline; if these momentum indicators continue to weaken, it could signal strong bearish pressure and lead to further declines in Bitcoin's price.

BTC/USDT daily chart

However, a close above the $69,648 weekly resistance level would change the market structure by forming a higher high on the daily timeframe. Such a scenario might drive a 3% rise in Bitcoin's price to retest its June 7 high of $71,997.

Cryptocurrency prices FAQs

Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

RELATED CONTENT

Loading ...

Copyright © 2024 FOREXSTREET S.L., All rights reserved.