After showing glimpses of promise at the start of July, Bitcoin’s (BTC) price slumped back to the $60K mark with other cryptocurrencies nursing declines of their own.
According to 24-hour charts, the largest cryptocurrency fell by nearly 5%, settling at $60K as traders scan the horizons for tell-tale signs of further selling pressure. While it is easy to consider the $60K mark as a potential support level for BTC, skeptics are bracing for a steeper fall in the coming days.
At the start of June, BTC surpassed expectations by circling $63K, riding the waves of positive macro liquidity change. The charts painted a picture of promise, with Rekt Capital noting on X that the asset could climb as high as $71k following a correlation with USD liquidity.
“Biggest Fed Net Liquidity rate-of-change spike in 15 months,” said Cole Garner, a market analyst. “Last time that happened, bitcoin rose 40% in one week. Not assuming a repeat, but you love to see it.”
However, the positive sentiments were short-lived following the steep decline of the asset over 24 hours. Several analysts have attempted to rationalize the decline with a cross-section pointing to the incoming release of Mt. Gox’s bitcoins valued at $9 billion to creditors.
Word on Cryptoville is that the creditors, upon receipt of their assets, will embark on a selling spree expected to drive prices downward in June. Proponents of this theory point to the massive gains made by BTC since the 2014 hack as reasons for a mass selloff, with Gemini’s recent payout to creditors accentuating the fact.
Outside of Mt. Gox, uncertainties around US interest rates have weighed heavily on BTC, but official statements from the Federal Reserve are due on Wednesday.
A number of on-chain indicators, specifically the net unrealized profit and loss (NUPL) and the assets Adjusted Spent Output Profit Ratio (SOPA), are predicting a gloomy July for BTC.
Sinking the rest of the markets
Bitcoin’s decline appears to be affecting the broader cryptocurrency market, with leading altcoins having their fair share of losses. In the same 24-hour window, Ethereum (ETH) fell by 3% while BCH and PEPE incurred similar losses to the dismay of investors.
The bloodbath left the entire virtual currency market capitalization at $2.26 trillion, but despite the declining metrics, daily trading volumes have risen by 6.16% over the last day. The biggest winners appear to be altcoins that held their ground trading sideways, including SOL and XRP, assets basking in their recent regulatory and legal victories.
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