Key Points
- Bitcoin (BTC) has fallen below $60,000, marking a 4% decline in 24 hours.
- The drop is linked to ETF outflows, options expiry, and potential liquidations if Bitcoin rebounds to $62,600.
Bitcoin (BTC) has once again experienced a drop, this time falling below the $60,000 mark. This represents a 4% decrease within a single day.
This fall in Bitcoin’s price coincides with a broader downturn in the crypto market, affecting major assets such as Bitcoin, Ethereum (ETH), DOGE, BNB, and LINK.
Market Sentiment and Repayments
The Fear & Greed Index indicates a neutral sentiment among market participants, with a reading of just 48. This suggests that investors are neither overly fearful nor excessively greedy at the moment, although uncertainty remains.
Adding to this uncertainty is the anticipated repayment of debts by Mt. Gox. The platform owes over $9 billion worth of BTC to more than 127k creditors, many of whom are expected to cash in on their unrealized profits.
ETF Outflows and Options Expiry
Outflows from U.S Spot Bitcoin ETFs have significantly contributed to the current market situation. After five consecutive days of inflows, the trend reversed with an outflow of $13.7 million on 2 July.
Furthermore, the upcoming expiration of substantial BTC and ETH options has added to market volatility. Data from Deribit shows that BTC options worth over $1.04 billion are set to expire on 5 July, leading to cautious trading and increased uncertainty.
Liquidations have also intensified market sell-offs, with recent sell-offs triggering over $260 million in liquidations within a 24-hour period. Despite this, some analysts remain optimistic about the market’s future.
Analyst Ali Martinez, however, has warned of further potential liquidations. He suggests that if Bitcoin rebounds to $62,600, the market could see over $1 billion in liquidations.
Ethereum ETF Launch Delay
The delay in the launch of Spot Ethereum ETFs has added to the market’s pessimism. The SEC has set a new deadline of 8 July for form submissions, prolonging the approval process.
The crypto community is yet to react positively to this news, with many expressing frustration over the extended process. The hope is that Bitcoin and the rest of the crypto-market will resume their bull run once these ETFs are launched.
