CryptoBitcoinBitcoin Drops Below $59,000 Amid Market Turbulence

Bitcoin Drops Below $59,000 Amid Market Turbulence

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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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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