- Bitcoin fell 3.89% on Mt. Gox redemption and German government selloff.
- 75.48% of BTC holders were “in profit”, indicating potential bullish sentiment.
Cryptocurrency markets had another tough day as the global market cap fell to $2.4 trillion, down 3.33% over the last 24 hours.
Bitcoin has taken a hit!
Bitcoin (BTC) in particular has drawn significant attention over the past week, with its steep decline fueled by rumors surrounding the Mt. Gox redemption process.
In fact, on July 5th, as Mt. Gox began redemptions, BTC fell to its lowest level since February.
Source: www.mtgox.com
To make matters worse, the German government decided to sell off its Bitcoin holdings at this point, which has led to increased fear, uncertainty and doubt (FUD) within the community.
Devchart, co-founder of ChartAlerts, commented on this:
“There are awkward moments when you want to refill this dump, but then you realize that Mt Gox and the German government have $10 billion worth of #BTC that will be released to the market in the near future.”
According to the latest update, BTC is trading at $55,459.62, down 3.89% in the last 24 hours.
This downtrend is further confirmed by the Relative Strength Index (RSI), which has fallen well below neutral levels and is approaching the sell-off zone at the time of writing.
Source: TradingView
Historically, overbought and oversold conditions have often signaled a potential pullback, so there remains hope that BTC can recover once the Mt. Gox redemption process is complete.
The impact on Bitcoin Cash cannot be overlooked
Bitcoin Cash (BCH) also fell 6.79%, trading at $311.35 at the time of writing.
The difference in the decline suggests that BCH has suffered significantly greater losses compared to BTC, something that was previously highlighted by Alex Thorn, Head of Firmwide Research at Galaxy Digital, when he said:
Source: Alex Thorn/X
However, according to AMBCrypto’s IntoTheBlock data analysis, a significant number of BTC holders (75.48%) were holding tokens worth more than their purchase price at the time of writing, indicating that they are “making money.”
Source: IntoTheBlock
In contrast, a smaller segment (18.39%) “lost money” by holding BTC tokens worth less than their purchase price, suggesting bullish sentiment toward Bitcoin or an impending price surge.
CEX HTX summed it up well when they said:
Source: HTX/X