Over the last 24 hours, the cryptocurrency market has declined, with Bitcoin’s price falling by more than $1,400 within two hours.
After this drop, Bitcoin’s 24-hour losses reached 2.1%, and its price is currently at roughly $65,891. This market movement was caused by a number of causes, including the beginning of Mt. Gox’s creditor obligations; even the introduction of Ether ETFs was unable to drive prices higher.
Over 140,000 Bitcoin, or around $8.5 billion, have been returned to creditors by Mt. Gox, the now-defunct cryptocurrency exchange that filed for bankruptcy in 2014.
The exchange transferred over 47,500 Bitcoin, worth around $3.2 billion, to two unidentified addresses on July 23. Repayments for Bitcoin and Bitcoin Cash on the Kraken cryptocurrency exchange started for some creditors of Mt. Gox on July 23, according to a Telegram channel of such creditors.
Creditors have been waiting for the reimbursement process for more than ten years. Bitcoin’s price has increased by over 10,000% in this period. The market is under pressure due to concerns that this extra supply of Bitcoin may be sold off after it enters circulation.
On July 23, Hong Kong introduced Asia’s first Bitcoin futures inverse product, which changed the dynamics of the market. The goal of the CSOP Bitcoin Future Daily (-1x) Inverse Product is to provide investors with a way to profit from drops in the price of Bitcoin. With this new instrument for betting against Bitcoin, there’s a chance that selling activity will rise and the price will be under pressure.
Significant long position liquidations were also observed in the cryptocurrency market. In contrast to $40 million in short liquidations, over $159 million in long positions were closed in the 24 hours before July 24. More than $24 million in long positions were liquidated for Bitcoin in comparison to $13.93 million in short liquidations. In an already bearish market, these forced asset sales to reduce long positions intensified selling pressure.
Ether ETFs started trading that day as well, which could attract more investors to the crypto space. Analysts predict that adoption of Ether will be slower than that of Bitcoin ETFs, but this development brings new dynamics to the market and may cause short-term volatility to increase.
Political issues complicate the state of the market even further.
Market uncertainty has been brought about by President Biden’s decision to withdraw from the presidential contest. Regarding Vice President Kamala Harris’s position on cryptocurrencies and her possible influence on the election, investors are waiting for additional details.
In the upcoming months, the cryptocurrency market may see support despite the present decline due to a number of possible catalysts. There have already been benefits from the recent halving of Bitcoin in April and the adoption of Bitcoin ETFs earlier this year.
Another encouraging event for cryptocurrency could be the November U.S. presidential election, which favors pro-crypto candidate Trump.
