Bitcoin is experiencing its worst price drop in the past 2 months and has fallen below $61,000, below are the three main reasons why BTC price plummeted.
In the last 24 hours, prices Bitcoin (BTC) has dropped as much as 4.48%, plunged to a low at the time of writing around $61,252 USD after trading above $64,000 just a day before.
Analysts say the decline could be due combination of many factors, including developments from the Mt. Gox, the massive liquidation of long positions, and the continued capitulation of miners.
News about Mt. Gox shook market confidence
Job Bitcoin dropped suddenly from $62,900 to $60,853 coincided with a mid-afternoon announcement this afternoon from the trustee of the defunct exchange, Mt. Gox.
In the official announcement, Nobuaki Kobayashi announced the Bitcoin (BTC) and Bitcoin Cash (BCH) refund process will begin in early July. He stated the following:
The Recovery Trustee is prepared to make repayments in Bitcoin and Bitcoin Cash in accordance with the Recovery Plan […] Refunds will be made from the beginning of July 2024
This news was received negatively by the market, mainly due to concerns oversupply situation from beneficiaries who are able to sell off the returned assets.
Record of liquidation of long-term buying positions
Another news of downward pressure on Bitcoin. According to Latest data from Coinglass, a staggering $85.4 million worth of liquidation of long positions.
The event marks the largest liquidation since April 30 and May 1, when more than 195 million dollars ($95 million and $100 million respectively) in Long positions have been liquidated.
Such liquidations typically occur when the market price reaches the liquidation level of leveraged positions, trigger an automatic sell-off to cover losses, causing their value to continue to decrease. This contributed significantly to the rapid price decline for this volatile market.
Continuous miner capitulation adds to the selling pressure
The third important factor affecting Bitcoin price is the continuous capitulation of miners. According to information previously shared by Blogtienao, Miners have started selling the amount of BTC they mine to cover operating costs due to lack of profit.
This stage is possible putting significant downward pressure on Bitcoin prices because it increases the supply of Bitcoin sold on the market.
This is why Bitcoin could fall below $50,000
