On July 4, 2024, Bitcoin saw a significant drop below $57,000, hitting a low of $56,952 by 5:20 a.m. EDT. The market reacted to developments involving Mt. Gox and the German government’s transfer of about 3,000 bitcoins to undisclosed wallets on platforms like Coinbase, Bitstamp, and Kraken.
The downward trend continued with Bitcoin’s price falling 4% in the past day and over 6% throughout the week, slipping below $60,000 on July 3 at 9:05 p.m. EDT. Concerns heightened over Mt. Gox’s impending coin distribution this month, although no specific date was announced by the Mt. Gox Trustee. Meanwhile, reports from Arkham Intelligence indicated initial activity from Mt. Gox wallets in terms of test transfers.
Adding to the market unease, the German government’s sizable bitcoin transfer and cautious statements from Federal Reserve officials, including Chair Jerome Powell, on rate adjustments contributed to the bearish sentiment.
10x Research warned of further price declines, noting the possibility of Bitcoin testing the $50,000 range. They highlighted diminishing buy flows and accelerating sell-offs, emphasizing the importance of risk management amid current market conditions.
As Bitcoin grapples with these pressures, trading volumes remained low, pushing BTC below its 200-day moving average. The community is now watching closely to see if support levels hold or if further declines toward $50,000 could materialize, potentially offering new entry points for traders.
At the time of reporting, Bitcoin had managed a modest recovery above $58,000, but uncertainty looms over its short-term trajectory amid ongoing market volatility and regulatory developments.
