Cryptocurrency markets experienced significant declines today, with Bitcoin (BTC) dropping below the $61,000 mark amidst concerns over distribution and ETF outflows. This downturn coincided with U.S.-based Bitcoin ETFs recording $13 million in net outflows on Tuesday, halting a recent streak of inflows.
BTC slipped from $62,000 to $60,900 shortly after Tokyo markets opened, while other major cryptocurrencies such as Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) also saw losses of up to 3%. In contrast, XRP held steady, while Cardano (ADA) relinquished some gains from a previous rally linked to compliance with European regulations.
The drop in crypto prices coincides with anticipated distributions from the defunct Mt. Gox exchange, a factor highlighted by Singapore’s QCP Capital as contributing to the bearish sentiment. “Up to 140,000 BTC could flood the market,” the firm noted in a Telegram post, underscoring uncertainty over the exact timing of these distributions.
Mt. Gox, which suffered a notorious hacking incident in 2014, is slated to begin reimbursing former clients in July 2024 with assets in Bitcoin and Bitcoin Cash, potentially adding selling pressure to these markets.
Despite the current bearish outlook, some investors maintain a bullish long-term perspective. Tom Lee from Fundstrat Global Advisors reiterated his optimistic forecast that BTC could surge to $150,000 once the Mt. Gox distribution concludes. Lee, who had earlier predicted this rise citing factors like spot ETF demand and upcoming Bitcoin reward halving, believes the market could see a strong recovery in the second half of the year.
However, these predictions come with a cautionary note: this information is not intended as investment advice. For those interested in trading over 300 cryptocurrencies, Binance offers a 20% commission discount through this link. Stay informed with our exclusive news, analytics, and on-chain data by following our Telegram and Twitter accounts.
