On Thursday, July 4, 2024, Bitcoin, the world’s largest cryptocurrency, plunged below $59,000, marking its lowest point since late April amidst a broader market downturn.
At its lowest, Bitcoin touched $57,874 on Coinbase before edging back to $58,764, reflecting a 3.4% decline over the past week. Ethereum also saw a 4% drop, while Solana and Dogecoin faced even steeper declines, plummeting by up to 8%.
The primary catalyst behind this crypto slump appears to be the impending Mt. Gox situation. With the exchange scheduled to initiate repayments to creditors this month, concerns have risen about a potential influx of Bitcoin flooding the market.
The market turbulence has inflicted significant losses on traders, with over $237.91 million in long positions liquidated within a mere 24-hour period, according to Coinglass.
While some investors view this downturn as a buying opportunity, evidenced by a doubling in “buy the dip” sentiment across social media in recent days, others remain cautious. Kudret Ayyldr from GCM Investment speculates that Bitcoin could further decline to the $48,000-$50,000 range.
The sentiment within the crypto community is notably apprehensive, with the Fear and Greed Index currently registering at 45 out of 100, indicating a state of “Almost Fear.”
Looking forward, market participants are closely monitoring developments related to the Mt. Gox repayments, which are expected to heavily influence Bitcoin’s trajectory in the coming weeks.
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