Why Is Bitcoin’s Price Dropping?

Recent on-chain data disclose the factors behind the downturn in cryptocurrency values. The now-defunct Mt. Gox exchange has moved 13,265 Bitcoin, equivalent to $784 million, to two unknown wallets multiple times in the recent hours. These movements occur as bulls lose the critical $60,000 Bitcoin price support following overnight declines.

What Is Behind Mt. Gox’s Bitcoin Transfers?

A week after moving $2 billion worth of Bitcoin to the crypto exchange BitGo, Mt. Gox has transferred another $784 million worth of BTC to two undisclosed wallet addresses. Arkham Intelligence reports that $709.44 million in BTC was sent to the “1PuQB…nWhTb” address and $74.77 million to the “1Jbez…LAPs6” address. These BTCs are likely being moved to exchange addresses for repayment purposes. Access NEWSLINKER to get the latest technology news.

By late July, Mt. Gox had shifted 95,523 Bitcoin valued at $6.14 billion to BitGo, Kraken, Bitstamp, and other exchanges for repayment intentions. Despite these movements, Mt. Gox still holds 46,164 BTC worth approximately $2.74 billion at current prices, with expectations to conclude the repayment process by year-end.

How Are BTC Prices Affected?

These transfers seem to have instilled fear and market pressure, leading to a price decline. Bitcoin bulls have weakened, with BTC dropping by 2.32% to $59,600. Nonetheless, efforts to keep BTC prices above $60,000 are causing significant fluctuations, with prices oscillating between $50,000 and $60,000.

Bitcoin miners are also facing challenges, although investors remain optimistic about a post-halving rally. Additionally, Bitcoin whales have continued buying during the price drops. According to Santiment, major blockchain analysts, wallets holding between 100 and 1,000 BTC have acquired 100,000 BTC over the past six weeks.

Key Takeaways for Investors

Concrete Insights:

• Monitor the remaining BTC holdings of Mt. Gox for future market impacts.
• Observe BTC’s ability to stay above the $60,000 resistance level for signs of a rally.
• Keep an eye on whale wallet activities, as significant purchases can indicate market sentiment.
• Watch out for the upcoming Fed minutes for potential market-moving information.

The market is currently focusing on the anticipated Fed minutes, expected to be published today at 21:00, which are broadly predicted to signal a rate cut in September.