The stock market’s all-time record highs and sharp gains in AI-related stocks like Nvidia (NVDA) overshadowed the cryptocurrency slump. On July 5, Bitcoin (BTC-USD) fell by around 3%. It traded as low as $53,514, a level not seen since February 27, 2024.
Ethereum (ETH-USD), along with lesser-known cryptocurrencies like LIF3 and Fantom (FTM) also traded lower in the last month.
The sector is bracing for the estate of Mt. Gox’s trustee repaying victims in Bitcoin and Bitcoin cash. Markets do not know the size of these transfers. This creates uncertainties, causing markets to speculate that supply for BTC will far exceed daily demand.
Cryptocurrency holders who bought at recent highs must brace for the downtrend to end. Heavy dumping of coins into the market will pressure BTC prices. It takes only a few participants with large positions to hurt price levels.
The crypto market is speculating that around 230,000 traders held around $640 million worth of coins. They liquidated that on July 5.
Arkham, which tracks Germany’s Bitcoin wallet, said that its government holds over 40,000 bitcoins worth over $2 billion. Bitcoin does not have another ETF approval event to create new buyers. This could mean lower prices for longer.
