Unfortunately for the bulls, the BTC/USD pair might be headed for rougher waters with a series of bearish indicators pointing towards increased selling pressure in July.
Mt. Gox unlocking $9B in Bitcoin
One of the most significant bearish events in the cryptocurrency market in June was related to the long-awaited Mt. Gox repayments.
Mt. Gox, once the largest Bitcoin exchange, will repay 140,000 BTC worth around $9 billion to its creditors starting in early July 2024. This repayment follows a decade-long wait after the exchange’s collapse in 2014 that led to the loss of over 850,000 BTC.
The impending distribution has raised concerns about increased selling pressure on the market, with analysts predicting a significant drop in Bitcoin prices due to creditors’ potential to sell their received assets to realize profits, especially given Bitcoin’s 16,000% price appreciation since the hack.
For instance, JPMorgan analysts, led by Nikolaos Panigirtzoglou, point out that recent behavior from Gemini creditors, who likely liquidated part of the $2.18 billion in Bitcoin following Gemini’s May 29 announcement, supports this bearish argument.