SNEAK PEEK
- Bitcoin dropped to $53,600, its lowest since February.
- Analysts predict further decline due to Mt. Gox repayments.
- Long-term optimism hinges on potential Ethereum ETF approval.
On July 5, Bitcoin experienced a significant drop, crashing to $53,600 on Coinbase—the lowest it has traded since February. The sudden dip has sparked concerns among analysts, who fear the worst is yet to come. According to TradingView data, Bitcoin has since stabilized slightly, trading at $55,600 at publication.
Josh Gilbert, a market analyst at eToro, attributes much of the sell-off to fears surrounding Mt. Gox creditor repayments. Scheduled for July, these repayments will release around $8 billion worth of BTC into the market, potentially exacerbating the downward trend.
“The news flow is far more bearish than bullish right now,” Gilbert told Cointelegraph. “The selling activity we’re seeing unsettles investors, which often drives more selling.” He added that Bitcoin’s price could weaken in the short term until a positive catalyst emerges, such as investors ‘buying the dip’ or approving an Ethereum ETF.
Similarly, Pav Hundal, an analyst at Swyftx, echoed Gilbert’s concerns, suggesting that Bitcoin’s price action could worsen. “A vast wall of Bitcoin is about to meet a market that was already apathetic,” Hundal said. The macro conditions long-term are still favorable, but we could test 50k and lower. Currently, $52k is a crucial battleground for bears and bulls.”
Analysts from 10x Research also predict a continued dip, warning that Bitcoin’s price could fall as low as $50,000 in the coming weeks. They caution that selling could accelerate as support levels break and sellers scramble to find liquidity.
Despite the short-term bearish outlook, Gilbert sees reasons for longer-term optimism. “There are still positive factors at play,” he said. “The full acceptance of an Ethereum ETF from the SEC, with a July launch date, would be a big boost for the crypto market.”
While the current sentiment around Bitcoin is bearish, potential catalysts like an Ethereum ETF approval could provide the necessary boost to stabilize and drive the price higher. Until then, analysts advise caution as the market navigates through these turbulent times.
