Bitcoin Price Falls Below $58,000: When Can We Expect Market Growth? Opinion of ALTA - Blockchain Lab Analysts

Bitcoin Declines amid U.S. Political Uncertainty and Mt. Gox Concerns

Bitcoin's price has dropped to $57,837.7 on Bitget at 2 PM CET on July 4th. According to CoinGecko, the cryptocurrency has fallen by 4% within 24 hours and 22.1% within four months since reaching its all-time high of $73,737.94 on March 14, 2024.

Political Uncertainty and Mt. Gox Fears

Bloomberg attributes the decline to political uncertainty in the U.S. and concerns about cryptocurrency sell-offs by Mt. Gox clients. Investors speculate whether President Joe Biden will withdraw from the election, as urged by his Democratic Party colleagues. Polymarket predicts a 55% chance that Biden will step down before the August 19th convention. Standard Chartered suggests that Bitcoin's price may depend on Biden's decision to remain in the race.

Mt. Gox Compensation Plans

On June 24th, Mt. Gox's administrators announced plans to initiate compensation payouts. By the end of 2024, they aim to distribute 142,000 bitcoins (approximately $9 billion), 143,000 Bitcoin Cash coins ($53 million), and ¥69 billion.

Market participants express concerns about the potential selling pressure on Bitcoin's price due to the compensation distribution.

JPMorgan's Bitcoin Forecast

JPMorgan analysts predict that most Mt. Gox payouts will occur in July, leading to further Bitcoin price declines. They expect a price recovery in August.

ALTA's Bitcoin Market Growth Prediction

Analysts from ALTA – Blockchain Lab anticipate liquidity accumulation in the Bitcoin market this summer due to anticipation of autumn events, such as the U.S. elections and potential ETF approvals.

Major price shifts may not occur over the summer, but corrections could provide opportunities for market positioning. Macroeconomic conditions and new Bitcoin Layer-2 Scaling Projects could positively influence Bitcoin's price in the fall.

Other Cryptocurrencies

Ethereum's price decreased to $3,167, losing 4.3% in 24 hours. Other major cryptocurrencies, including XRP, BNB, Cardano (ADA), Dogecoin (DOGE), and Toncoin (TON), followed Bitcoin's decline, dropping 4.5% to 6%. Solana (SOL) experienced the steepest decline, falling 6.5% to $134.41.

Trader Liquidations

Coinglass reported approximately 102,000 liquidated positions on crypto exchanges in 24 hours, amounting to a total of $260 million in liquidations, including $68 million in Bitcoin and $65 million in Ethereum. This indicates that leveraged traders lacked sufficient funds to cover their positions.