Bitcoin
Bitcoin Drops to $57K: What’s Going On?
Bitcoin Drops to $57K: What’s Going On?
And Bitcoin keeps falling.
The world’s largest cryptocurrency fell below $59,000 on Thursday, July 4, 2024, hitting lows not seen since late April.
At one point, Bitcoin touched $57,874 on Coinbase before recovering slightly to $58,764. That’s still a 3.4% drop in the past week.
It’s not just Bitcoin that’s seeing a decline. Ethereum is down 4%, while Solana and Dogecoin have taken even bigger hits, falling as much as 8%.
So what’s behind this cryptocurrency crash?
A big part of this is the Mt. Gox situation. With the exchange ready to start paying creditors back this month, there are concerns about a flood of Bitcoin hitting the market.
Fundstrat’s Tom Lee thinks there’s a silver lining, though. He counted CNBC, “[Mt. Gox] was a huge obstacle for many years [but knowing] that will disappear in July, I think that is a reason to expect a fairly sharp recovery in the second half of the year”
The market shakeout was tough on traders, with more than $237.91 million in long positions wiped out in just 24 hours, according to Coinglass.
Source: Coinglass
Some see this drop as a buying opportunity.Buy the dip“The conversation has doubled on social media in recent days.
But not everyone is sure that we’ve hit rock bottom yet. Kudret Ayyldr of GCM Investment thinks we could see Bitcoin fall to the $48,000 to $50,000 range.
The climate in the crypto world is very tense right now. The Fear and Greed Index is at 45 out of 100, firmly in the “Almost Scared” zone.
As for what comes next, all eyes are on the Mt. Gox refunds. How this plays out could set the tone for Bitcoin’s price in the coming weeks.