Bitcoin price falls below $68,000 after $9.6 billion worth of transfers from Mt. Gox cold wallet
Bitcoin price fell below $68,000 after a significant amount was transferred from Mt. Gox cold wallet.
According to data from Arkham Intelligence, early Tuesday morning, Mt. Gox was found to have transferred at least $9.6 billion worth of Bitcoin from cold wallets.
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According to , the price of has fallen more than 1.5% over the past 24 hours and is trading at $67,818 at 10:17 AM ET. The Block’s pricing page. The GM 30 Index, which represents the top 30 cryptocurrencies, rose 1.42% to 145.45 during the same period.
Anticipation of larger trends
But QCP Capital analysts said the sudden ‘supply jitters’ were likely just a blip in a broader upward trend towards the end of the year.
A QCP Capital report on Tuesday outlined three reasons to remain bullish on Bitcoin in the medium to long term.
“A strong stock market, led by counters like Nvidia, should push cryptocurrency prices higher, while cryptocurrencies are enjoying unprecedented political support in the U.S., demand for Ether spot exchange-traded funds (ETFs) is expected to increase once trading begins. We anticipate converting new capital into cryptocurrencies,” added QCP Capital analysts.
Reduced market volatility during the summer
According to Joshua Lim, co-founder of Arbelos Markets, the defunct Mt. Some of the main creditors on the Gox exchange are investment firms specializing in non-performing loans, which are likely to use hedging strategies to manage the risks associated with their claims. “Some of the largest holders of Mt Gox claims are sophisticated distressed loan investment firms that are accumulating claims and hedging them with possible distributions,” Lim told The Block.
He added that increased cryptocurrency supply from Mt. Gox creditor payments and FTX assets could temper market gains in the medium term, leading to a less volatile market trading within a tight range over the summer.
“We are seeing options sellers emerge following the recent resolution of several major industry catalysts, such as the launch of the spot Bitcoin ETF, the halving, and the SEC’s decision on the spot Ether ETF. Market participants are likely pricing in more The market has calmed down this summer due to the high supply of Mt Gox and FTX properties and the glut due to SEC enforcement actions,” Lim added.
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