Markets
Bitcoin (BTC/USD) Slides After Mt. Gox Moves, ETH ETF to Go Live
- Bitcoin prices have fallen from recent highs due to concerns over Mt. Gox refunds.
- Despite the decline in the price of Bitcoin, BlackRock’s spot Bitcoin ETF has seen its largest inflow in more than four months.
- From a technical standpoint, Bitcoin found support over the weekend, but a hanging man candlestick close hinted at a potential downside.
- ETH ETF Ready to Launch. Will Bitcoin Benefit?
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Bitcoin prices have seen a pullback from yesterday’s recent high of $68,486. The decline is seen as a response to potential payments and movements of Bitcoin from Mt. Gox, which is looking to continue its refunds.
The Mt. Gox address conducted its initial test transactions on Bitstamp’s cold wallets. Blockchain intelligence firm Arkham Intelligence identified these test transactions in a post on X (formerly Twitter) on July 22. Link to tweet.
Source: X.com/Arkham Intelligence
Approximately 127,000 Mt. Gox creditors are owed more than $9.4 billion worth of Bitcoin, having waited more than a decade for their funds to be returned.
However, some cryptocurrency investors are concerned that the Mt. Gox redemptions could lead to selling pressure, potentially lowering the price of Bitcoin. This appears to have market participants worried, with Bitcoin remaining in the red for the second day in a row.
This should have been a positive day for the sector, as the Ethereum (ETH) ETF is set to launch. There is speculation that an ETH ETF could indirectly benefit Bitcoin, as investors who aren’t particularly interested in Bitcoin could add it to their portfolios alongside ETH to mitigate risk and diversify.
ETF Flows Break Records
The drop in Bitcoin’s price comes as BlackRock’s spot Bitcoin exchange-traded fund (ETF) saw its biggest inflow in more than four months, with more than $523 million flowing into the fund on Monday.
On July 22, the iShares Bitcoin Trust ETF (IBIT) acquired 7,759 bitcoin, worth just over $523 million at the time, according to data from Hey Apollo shared by its co-founder in a July 23 post on X.
IBIT ETF Flows
Source: X.Com, Heyapollo.com
BTC/USD Technical Analysis
From a technical perspective, Bitcoin found support over the weekend, bouncing off the 50-day and 100-day MAs before reaching its most recent high near $68,486. Yesterday’s hanging man candle close hinted at a potential downside move that has since materialized.
Immediate support is found between 64370 and 63737 and is provided by the 50-day and 100-day MAs. A breakout and support at 61751 is focused before the 200-day MA just above the psychological level of 60000.
Support
Resistence
- 68486
- 70000 (psychological level)
- 71935
Bitcoin (BTC/USD) Daily Chart, July 23, 2024
Source: TradingView.com (click to enlarge)
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