Bitcoin Price Drops Amid Market Turbulence
In the past 24 hours, Bitcoin’s price has fallen by 4.8%, dropping to a low of $60,601 after reaching above $64,000 the previous day. This decline is attributed to three main factors:
- Mt. Gox News: The market reacted negatively to an announcement from Mt. Gox trustees that they would start repaying victims of the 2014 hack in July 2024 with Bitcoin (BTC) and Bitcoin Cash (BCH). The fear of oversupply from these repayments caused significant market jitters.
- Record Liquidations: A substantial amount of long BTC positions, worth $85.4 million, were liquidated. This marks the largest liquidation event since April 30 and May 1, which saw a 12.5% price drop. These liquidations trigger automatic sell-offs, further driving down the price.
- Miner Capitulation: Ongoing miner capitulation, where miners sell off BTC to cover operational costs, continues to add downward pressure on Bitcoin’s price. This phase typically follows a period of unprofitability for miners.
At the time of reporting, Bitcoin was trading at $61,241.