Bitcoin Plunges Below $58K As Investors Brace For Mt. Gox Payouts This Month

Updated: 04 July 2024

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Bitcoin slumped over 3% and briefly dipped below $58k for the first time in two months as investors brace for $8.5 billion in repayments by the defunct Japanese crypto exchange Mt. Gox that are set to begin early this month.

BTC lost the psychological $60k support following a wave of selling pressure that recently washed over the crypto market. As a result, the leading crypto traded at $58,563.36 as of 3:30 a.m. EST.

Selling Pressure Forces BTC To A Critical Technical Support

Mt. Gox is expected to start initiating Bitcoin repayments to creditors early this month. The dollar value of the amount of BTC owed to investors has risen substantially over the past decade, and now stands at around $8.5 billion.

As such, many in the market believe this could lead to a tsunami of selling pressure in the crypto market, putting new downward pressure on the BTC price.

$BTC 4H
First test of 200D MA since oct 2023 reclaim (pre – ETF)

so far since trend rejection & reversal around $63.8K spot selling has been the main driver of this trend

so in order for this HTF MA to actually act as a systematic trigger for the market we need to see market… pic.twitter.com/FuW3A48mnJ

— Skew Δ (@52kskew) July 4, 2024

While crypto holders and investors prepare for the worst, the Bitcoin price briefly dipped below the $58,000 level to $57,874 on Coinbase for the first time in more than two months

The leading crypto also dropped to the crucial technical support at the 200-day Moving Average (MA), which it has not tested for the last 10 months.

Meanwhile, 24-hour Bitcoin long liquidations topped $73 million, according to data from CoinGlass.

Mt. Gox Repayments Might Not Be So Bad, Opportunity To Buy The Dip?

Despite the recent technical developments, the fear surrounding the Mt. Gox repayments and BTC’s subsequent correction, some investors do not seem too worried. Multiple traders have seen the recent crypto crash as an opportunity to buy the dip.

📉 Bitcoin has just dropped to as low as $59.4K and Ethereum to $3.1K in the previous hour.

The crowd is showing signs of seeing this as a buy the dip opportunity. Ideally, we wait for their enthusiasm to settle down. The time to buy is when they are impatient and skeptical. pic.twitter.com/5C1BmEn8Av

— Santiment (@santimentfeed) July 3, 2024

Crypto research firm Santiment shows that mentions of “buy the dip” on popular social platforms such as X, Reddit, Bitcoin Talk and 4chan briefly doubled in the last 48 hours.

Meanwhile, a recent CoinShares report also analyzed the possible impact of the Mt. Gox repayments on the BTC price. The analysts concluded that “the Mt. Gox overhang may not be as brutal as expected.”

As investors prepare for the potential selling pressure, some may pivot to Bitcoin-themed alternatives in presale to wait out the storm.

One analyst favorite is 99Bitcoins (99BTC), a pillar of crypto education that has over two million registered users for its courses and more than 705,000 subscribers on its YouTube channel. Its ICO has already raised more than $2.3 million.