Bitcoin (BTC) Drops to $63,200 Amid Mt. Gox Payout Fears and Increased Selling Pressure

Bitcoin (BTC), the world’s oldest and most valued cryptocurrency, failed to sustain its upward rally and turned bearish around the $63,649 level, hitting an intra-day low of $63,211. The downward trend can be attributed to renewed selling pressure in the crypto market.

This pressure was intensified by the Mt. Gox trustee’s announcement that creditors of the defunct exchange would begin receiving 142,000 Bitcoin, worth nearly $9 billion, starting in July.

This raised concerns that these creditors might sell their holdings after waiting over a decade.

Furthermore, the US government sent nearly 4,000 Bitcoin seized from a convicted drug dealer to Coinbase, and the German government transferred $24 million in seized Bitcoin to exchanges, both signalling potential liquidation. These factors have contributed to increased selling pressure on Bitcoin.

SEC Actions and Regulatory Pressure Continue to Impact Bitcoin and the Cryptocurrency Market

It should be noted that the SEC’s stance on cryptocurrencies continues to spark debate, particularly with ongoing cases involving Ripple and recent actions against major exchanges such as Binance, Coinbase, and Kraken. The latest development is the SEC’s complaint against Plutus Lending LLC, also known as Abra.

The SEC alleges that Abra failed to register its crypto lending product, Abra Earn, and operated as an unregistered investment company.

Abra Earn allowed U.S. investors to deposit cryptocurrency in exchange for interest, with peak deposits totalling around $500 million.

Meanwhile, Bitcoin’s price has continued to decline in response to these regulatory developments. After reaching a peak of $65,000, Bitcoin has fallen to $63,242, reflecting a 1.47% decrease in the last 24 hours.

Although this price remains above its August low of $48,800, it is still more than $10,000 below its all-time high. These fluctuations underscore the ongoing challenges facing the cryptocurrency market.

Semler Scientific Boosts Bitcoin Holdings Amid Growing Institutional Adoption

On the other hand, Semler Scientific has expanded its Bitcoin holdings by acquiring an additional $5 million worth, raising its total to $83 million. This purchase was funded by cash generated from the company’s operations.

Chairman Eric Semler has expressed optimism about Bitcoin’s increasing institutional adoption, which he believes will contribute to a rise in its price.

While Semler Scientific follows in the footsteps of MicroStrategy, the leading corporate holder of Bitcoin with over $14.4 billion, corporate adoption of Bitcoin remains in its early stages.

Although companies such as Marathon Digital, Tesla, and others are making significant investments in cryptocurrency, widespread corporate integration is still developing.

Semler Scientific’s increase in Bitcoin holdings highlights growing institutional interest, potentially boosting confidence in the cryptocurrency.

While its impact on BTC price might be modest compared to larger players, it reinforces a positive trend towards corporate adoption.

Bitcoin (BTC/USD) Price Forecast

Bitcoin (BTC/USD) is currently trading at $63,400 and encountering significant resistance around the $65,000 mark, a key psychological barrier reinforced by a double-top pattern on the 4-hour chart.

The appearance of several Doji candles just below this resistance level suggests that the upward momentum might be weakening. If Bitcoin fails to surpass this resistance, a bearish correction could be on the horizon.

In case of a price pullback, initial support is expected around $62,600. If the decline continues, the next crucial support level is near $62,000.

This level is especially significant as it coincides with an upward trendline, attracting additional buying interest. The 50-day Exponential Moving Average (EMA) at $62,100 further strengthens this support zone.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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