Bitcoin’s tumble below the $65,000 mark for the first time in six days is “likely” due to a decline in market sentiment and seasonal trends rather than Mt. Gox creditors selling Bitcoin.
“The instant dump you worried about didn’t occur. Any price drop would be likely due to market sentiment, not Mt. Gox selling,” CryptoQuant founder Ki Young Ju wrote in a July 24 X post.
“After the Mt. Gox creditors’ repayment, all global time zones have passed,” Ju added.
“I think that’s FUD. It always has been,” crypto trader “Roman” told Cointelegraph.
Bitcoin’s BTCUSD drop below $65,000 comes after recent trader speculation that it may be forming solid support at this price range. The move down represents a 2.5% decrease over 24 hours, wiping out $24.68 million in long positions, as per CoinGlass data.
It is currently at risk of dropping below another critical level and is currently trading at $64,247, according to CoinMarketCap data.
Reasons behind Bitcoin price drop
According to several analysts, the price drop might be influenced by seasonal factors, the spot Ether ETHUSD ETF launch, and even political factors.
Cane Island Alternative Advisors founder Timothy Peterson linked Bitcoin’s underperformance to this time of year, which historically sees weak performance.
“Our research indicates a consistent trend of underperformance from July 22 to Sept. 22,” Peterson told Cointelegraph.
“Bitcoin’s seasonal pattern occurs slightly later in the year and is the set-up for the frequently occurring “Uptober” that follows,” Peterson added.
Meanwhile, Capriole Investments founder Charles Edwards claimed that the launch of spot Ether exchange-traded funds (ETFs) on July 23 might also be affecting market sentiment.
“The whole market would have been better if the ETH etf launch wasn’t in 2024,” Capriole Investments founder Charles Edwards wrote in a July 24 X post.
“The ETH ETF launch has been bad for BTC and bad for ETH. ETH has been languishing this entire cycle, and now it’s muddied the waters at the institutional level with the etf launch.”
Related: BTC price to retest $72K as Bitcoin sets up $7B liquidation showdown
However, pseudonymous crypto trader Roman told Cointelegraph that the decline is just a correction after Bitcoin spiked following the assassination attempt on former US President Donald Trump.
“This pump was artificial, coming straight from the news that Trump’s assassination attempt failed + soon after swing states had him winning by several points,” he stated.
“Although the market is pumped, news-based moves often retrace quite a bit,” he added.
However, overall sentiment remains on the more bullish end, according to the Crypto Fear & Greed Index.
The indicator, which tracks market sentiment toward Bitcoin and crypto, reads a “Greed” score of 68, up seven points in the past week.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
