Bitcoin price struggles at $64,000 amid positive exchange inflow and Mt. Gox transfer concerns
- Bitcoin Magazine CEO David Bailey confirms that Kamala Harris will not speak at the upcoming Bitcoin Conference.
- Bitcoin adoption has grown as Ferrari Luxury Car Manufacturer accepts crypto payments across Europe.
- Continued Mt. Gox funds movement may negatively impact Bitcoin's price.
- On-chain data shows a positive exchange inflow, suggesting selling pressure.
Bitcoin (BTC) extends its recent correction move and falls to nearly $64,000 on Thursday. CEO David Bailey confirmed Kamala Harris will not speak at the upcoming Bitcoin Conference, while the Ferrari Luxury Car Manufacturer announced the acceptance of crypto payments across Europe. Meanwhile, the bankrupt Mt. Gox exchange continues to move funds to pay its creditors. On-chain data reveals a positive exchange inflow, indicating ongoing selling pressure in the market.
Daily digest market movers: Bitcoin declines as Mt. Gox continues repayment to creditors
- According to data from Arkham Intelligence, Mt. Gox moved a total of $2.47 billion in BTC to new wallets on Wednesday in order to distribute 5,106 BTC worth $335.8 million to 4 separate Bitstamp addresses. This transfer of funds likely sparked FUD (Fear, Uncertainty, Doubt) among traders, potentially contributing to Bitcoin's price decline.
- Mt. Gox still holds 80,128 BTC worth $5.32 billion. Bitstamp is one of the five exchanges the Mt. Gox Trustee works with to return funds to Mt. Gox creditors. So far, Mt. Gox has sent 10,216 BTC worth $675.9 million to Bitstamp.
MT GOX UPDATE: $2.47B BTC MOVED
— Arkham (@ArkhamIntel) July 24, 2024
Mt. Gox moved a total of $2.47B BTC to new wallets this morning in order to distribute 5106 BTC ($335.8M) BTC to 4 separate Bitstamp addresses.
Mt. Gox still holds 80,128 BTC ($5.32B).
Bitstamp is one of the 5 exchanges that the Mt. Gox Trustee… pic.twitter.com/sGTOSN1MfL
- Ferrari, a Luxury Car Manufacturer, will accept Bitcoin and crypto payments in Europe. This announcement was made in a press release on Wednesday. This decision may appeal to tech-savvy and crypto-invested individuals who favor utilizing digital assets for premium purchases. It also marks a significant step toward widespread acceptance of cryptocurrencies within the luxury goods sector, potentially prompting other prestigious brands to adopt similar strategies.
- David Bailey, CEO of Bitcoin Magazine, confirmed via a Twitter post that Kamala Harris will not speak at the upcoming Bitcoin Conference, which runs from July 25 to July 27.
- He said, "No surprise. What can she say to us when she's actively imprisoning developers, forcing our industry overseas, attacking PoW… it would have been a disaster for her. All eyes on Trump now."
- And also tweeted, "Choice is simple really, Trump Pump or Biden Dump?"
- Donald Trump's endorsement of crypto and his upcoming speech at the Bitcoin Conference could further bolster his appeal among voters who are actively involved in cryptocurrency investments.
Kamala Harris will not be speaking @TheBitcoinConf. No surprise. What can she say to us when she’s actively imprisoning developers, forcing our industry overseas, attacking PoW… it would have been a disaster for her.
— David Bailey $0.65mm/btc is the floor (@DavidFBailey) July 24, 2024
All eyes on Trump now.
- According to CryptoQuant, Bitcoin Exchange Netflow (Total) shows the difference between BTC flowing into and out of the Kraken exchange as the platform executing the first reimbursements to Mt. Gox creditors.
- A positive netflow suggests that more Bitcoin is being moved into exchanges (potentially for selling or trading). In contrast, a negative netflow indicates more Bitcoin is being withdrawn from exchanges (potentially for holding or transferring to personal wallets).
- In BTC's case, the netflow was positive at 47,569 BTC on Thursday, indicating that Mt. Gox creditors are selling their reimbursements, contributing to a decline in Bitcoin's price. If this trend of withdrawals persists, it could strengthen selling pressure significantly, potentially causing further declines in Bitcoin's price.
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Bitcoin Exchange Netflow (Total) Kraken chart
Technical analysis: BTC continues to retrace below the $65,000 mark
Bitcoin price faced resistance around the weekly resistance level at $67,209 earlier this week. At the time of writing, BTC extends the correction move for the fourth day in a row and dips by 1.87% daily at around $64,139 on Thursday.
If BTC continues to retrace, it could find support at a 50% Fibonacci retracement level (plotted from the June 7 high of $71,997 to the July 5 low of $53,475) at $62,736. This level coincides with the ascending trendline drawn by joining multiple swing lows from July 5 to mid-July.This would establish a critical zone of support that should be monitored closely.
If this area of support at $62,736 holds, BTC could rise 7% to retest its weekly resistance at $67,209.
On the daily chart, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) indicators are trading above their neutral levels of 50 and zero, respectively. This robust momentum signals a strong bullish sentiment in the market.
In case of an aggressive bullish outlook, and if BTC closes above the $67,209 level, it could extend an additional rise by 7% to retest its June 7 high of $71,997.
BTC/USDT daily chart
However, a close below $62,736 and a break below the ascending trendline would change the market structure from bullish to bearish by forming a lower low on the daily timeframe. Such a scenario might precipitate a 10% crash in Bitcoin's price to retest its July 12 low of $56,405.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
