Ethereum

Token

Bitcoin

when

<p>The post <a href="https://coinpedia.org/news/crypto-market-crash-will-bitcoin-price-drop-below-50k/" rel="noopener noreferrer nofollow">Crypto Market Crash: Will Bitcoin Price Drop Below $50K?</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>After maintaining a price above $60,000 for a significant period, Bitcoin recently fell below $58,000, marking a drop of over 3.8% in the past 24 hours. This decline has caught the attention of many analysts and investors. Here’s a breakdown of the current situation and what might lie ahead for Bitcoin.</p>
<h2 class="wp-block-heading" id="h-current-bitcoin-price-dynamics"><strong>Current Bitcoin Price Dynamics</strong></h2>
<p>Bitcoin’s price dipped below $58,000 early on Thursday, reaching a two-month low. This drop comes amidst an unusually low volatility phase, with BTC prices previously fluctuating between $60,000 and $70,000. With increasing fear and supply in the crypto market, bearish anticipations are on the rise. Standing at the 200D EMA, the breakdown chances are significantly higher than that of a reversal as the trading volume surges 55% in 24 hours.</p>
<p>Despite this recent price dip, Glassnode’s <a href="https://x.com/glassnode/status/1808426939058676013" rel="noopener noreferrer nofollow">analysis </a>suggests that periods of low volatility are often followed by significant price changes.</p>
<h2 class="wp-block-heading" id="h-key-factors-behind-the-recent-price-drop"><strong>Key Factors Behind the Recent Price Drop</strong></h2>
<p>Wise Advice, a crypto analyst, has <a href="https://x.com/wiseadvicesumit/status/1808750222392066435" rel="noopener noreferrer nofollow">shed </a>light on the possible reasons behind the BTC freefall.&nbsp;</p>
<h3 class="wp-block-heading" id="h-mt-gox-token-distribution"><strong>Mt. Gox Token Distribution</strong></h3>
<p>One major factor contributing to Bitcoin’s price drop is the upcoming distribution of nearly $9 billion worth of BTC by the defunct Mt. Gox exchange. With around 140,000 Bitcoins set to be distributed to creditors in July, there is a fear that these creditors might sell off a substantial portion of their BTC holdings. Given that the price of Bitcoin was approximately $600 when Mt. Gox collapsed, these creditors stood to make substantial profits, which could pressure the BTC market.</p>
<h3 class="wp-block-heading" id="h-miners-selling-off-bitcoin"><strong>Miners Selling Off Bitcoin</strong></h3>
<p>Another issue is that Bitcoin miners have started to sell their BTC holdings. Since Monday, they have offloaded over $150 million worth of Bitcoin on exchanges. This selling pressure comes as daily miner revenue has decreased from $79 million to $29 million due to the Bitcoin halving event. To maintain their operations, miners are forced to liquidate their assets.</p>
<h3 class="wp-block-heading" id="h-increased-liquidations"><strong>Increased Liquidations</strong></h3>
<p>The past 24 hours saw approximately $231.9 million worth of long positions being liquidated. This has further exacerbated the Bitcoin price drop and created a feedback loop of declining prices and increased liquidations.</p>
<h2 class="wp-block-heading" id="h-buy-the-dip-opportunity"><strong>Buy-the-Dip Opportunity?</strong></h2>
<p>With the increasing supply, the long-liquidations are on the rise. Will the bearish trend result in a drop below the $56,000 level to test the psychological mark of $50,000? On-chain data provider Santiment has <a href="https://x.com/santimentfeed/status/1808706003938202065" rel="noopener noreferrer nofollow">observed </a>heavy sell-offs in both Bitcoin and altcoins, with prices hitting nearly two-month lows. Despite the anticipated arrival of spot Ethereum ETFs by July 15, Ethereum prices have also dipped below $3,200.</p>
<p>Santiment suggests that the current market conditions may pose a buy-the-dip opportunity. They recommend waiting for initial market enthusiasm to fade and for traders to become skeptical and impatient before making new investments.</p>
<p><strong>Will BTC reach $50K or stay at $56K with the current decreasing rate? Tell us your views.</strong></p>

Crypto Market Crash: Will Bitcoin Price Drop Below $50K?

Table of Contents

CoinPedia News

Andre artikler udgivet 4. jul. 2024

Bitcoin falls below $58K on Coinbase, first time in 2 months

Why Tether (USDT) on TRON (TRX) is Vital for Businesses Targeting Emerging Markets

$1.1 Million TVL Vanishes from Friend.tech Amid Base Network Woes

Zebu Live 2024: The UK’s Premier Web3 Conference Returns with Steven Bartlett, Coinbase, Solana, ...

Solana (SOL) Price Faces Decisive Phase as Bears Threaten $100 Level

MoonBag Listing On LBank Confirmed - Is Coinbase Next For The Meme Coin Offering High ROI?

Join our free newsletter for daily crypto updates!