News
Bitcoin Drops to $57,000: What’s Happening?
Bitcoin Drops to $57,000: What’s Happening?
And Bitcoin continues to fall.
The world’s leading cryptocurrency fell below $59,000 on Thursday, July 4, 2024, hitting lows not seen since late April.
At one point, Bitcoin hit $57,874 on Coinbase before bouncing back a bit to $58,764. That’s still a 3.4% decline from last week.
It’s not just Bitcoin that’s suffering the 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 slide?
An important part is the Mt. Gox situation. With the exchange ready to start paying creditors this month, there is concern that a wave of Bitcoin could flood into the market.
Fundstrat’s Tom Lee thinks there is a silver lining, though. He said “CNBC,”[Mt. Gox] it was a huge overhang for many years [but knowing] which will disappear in July, I think that is a reason to expect a fairly sharp recovery in the second half”
The market shakeout has been tough on traders. Over $237.91 million in long positions were wiped out in just 24 hours, according to Coinglass.
Source: Coinglass
Some see this drop as a buying opportunity.”Buy the drop“In the last two days, the chatter on social media has doubled.
But not everyone is sure that the bottom has been reached. Kudret Ayyldr of GCM Investment thinks we could see Bitcoin fall into the $48,000 to $50,000 range.
The mood in the cryptocurrency world is quite tense at the moment. Fear and Greed Index stands at 45 out of 100, firmly in the “Almost Scary” zone.
Looking ahead, all eyes are on the Mt. Gox refunds. How that plays out could set the tone for Bitcoin’s price in the coming weeks.