Bitcoin Price Trends As Mt. Gox Returns Bitcoin To Creditors -

Mt. Gox has begun repaying Bitcoin to its creditors after over 10 years of trading issues. The repayments will be made in Bitcoin and Bitcoin Cash through 5 partnered exchanges: Bitbank, BitGo, Bitstamp, Kraken, and SBI VC Trade – a Japanese exchange.

Arkham Intelligence reported that Mt. Gox’s wallet has conducted test transfers of Bitcoin to Bitbank’s wallet, likely as a preliminary step for repaying creditors. Each exchange will manage the repayment process differently within a 90-day period.

The founder of CryptoQuant revealed that recent Bitcoin sell-offs by global governments have had minimal impact compared to the overall capital inflows into the cryptocurrency market. Since 2023, over 224 billion USD has entered the market. However, the Bitcoin seized by governments is valued at only 9 billion USD, or just 4% of the total.

K33 Research predicts that after the launch of the Spot Ethereum ETF, Ethereum’s price could outperform Bitcoin due to the lack of selling pressure from the German government and Mt. Gox. Ethereum has lagged behind Bitcoin in returns over the past year.

Standard Chartered Bank forecasts that Bitcoin’s price might reach a new high in August, potentially hitting 100,000 USD by the US presidential election date in November. This prediction is based on the possibility of Donald Trump, who has expressed support for cryptocurrencies, winning the election.

On July 6, Spot Bitcoin ETFs saw a net inflow of over 143.1 million USD, the highest in a month. This happened after Bitcoin’s price fell below 54,000 USD on July 4. Grayscale was the only entity to experience outflows during this period.

CryptoQuant reported that Bitcoin miners are signaling surrender due to reduced returns following the fourth Bitcoin halving. Since April, miners’ revenue has significantly decreased, indicating that Bitcoin’s price may have reached its lowest point.

DappRadar reported that the number of Web3 application users hit an all-time high in the second quarter, with unique daily active wallets (UDAW) averaging about 10 million over the past 3 months. This is a 40% increase from the first quarter. However, this surge may have been driven by airdrop hunters.

Technical Graph Analysis: July 9-15 2024

Bitcoin (BTC)

Bitcoin (BTC) price has been affected by news from Mt. Gox, pushing it down to a new low below 56,000 USD. Despite the Relative Strength Index (RSI) entering oversold territory, there is still a chance for the price to drop further to the support level of 52,000 USD. If it falls below this level, it is advisable to pause investments. For a short-term bullish reversal, the price needs to rise above 58,000 USD.

Support: 1,900,000 THB / 52,000 USD
Resistance: 2,300,000 THB / 58,000 USD

Ethereum (ETH)

Ethereum (ETH) has sharply declined to retest its previous low at 2,700 USD. This support level is crucial; failing to hold this price could shift the short-term trend to bearish. If it holds, the price should recover and rise above 3,250 USD to establish a new high and exit the short-term downtrend.

Support: 96,000 THB / 2,700 USD
Resistance: 120,000 THB / 3,250 USD

TRON (TRX)

TRON (TRX) posted a negative return of 1.93% over the past week, with its price moving sideways. This trend is relatively stronger than the overall market, but caution is needed around the 0.110 USD support level. If this support fails, the trend may turn bearish. The short-term profit-taking resistance is at 0.131 USD.

Support: 4 THB / 0.110 USD
Resistance: 4.90 THB / 0.131 USD

1Inch Network (1INCH)

1Inch Network (1INCH) experienced a 4.40% loss last week. The recent low at 0.30 USD can be used as a speculative buying point, but if the support level is breached, it’s recommended to cut losses. The short-term resistance is at 0.46 USD; breaking this level could lead to a continuous recovery.

Support: 11 THB / 0.30 USD
Resistance: 17 THB / 0.46 USD

Investment Trend

The Chairman of the Federal Reserve has emphasized the strictness of monetary policy, stating that interest rates will not be reduced until inflation reaches the 2% target. Although the non-farm payroll numbers came in higher than expected, the unemployment rate has slightly increased. Overall, macroeconomic factors continue to put pressure on Bitcoin prices.

The repayment of Bitcoin to Mt. Gox creditors and the sale of seized Bitcoin by the German government have driven Bitcoin prices to a new low, exerting pressure on Bitcoin and the cryptocurrency market throughout the past week.

This week, on July 9-10, the Chairman of the Federal Reserve is scheduled to testify on the economic situation and monetary policy before the US Congress. This testimony is highly anticipated as it will impact the overall market conditions.

A key highlight is the release of the June Consumer Price Index (CPI) on July 11. It is expected to come in at 3.1%, down from 3.3% the previous month. If the inflation numbers decrease, it could be a positive factor that helps push Bitcoin prices back up.

Despite significant declines in Bitcoin and other altcoin prices, there remains a risk of further drops without new positive factors. Long-term investors can consider accumulating Bitcoin and Ethereum at support levels. For short-term speculators, the market is currently at risk of further corrections or sideways movement without a clear direction, so it is advisable to pause investments.

If Bitcoin does not hit a new low, it may be possible to gradually accumulate large-cap coins with growth potential and upward trends like Solana (SOL) and Binance (BNB). For mid-cap coins, focus on those related to artificial intelligence.

References

Disclaimers

Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
Past returns or performance of digital assets do not guarantee future returns or performance.

Remark: views, information, knowledge and opinions are considered as contents that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither email nor content presented constitutes the investment advice.

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