NAIROBI (CoinChapter.com) — On May 27th, Bitcoin experienced a sharp decline following the transfer of 12,240 BTC ($843.6 million) from the Mt. Gox wallet. The wallet, once holding 140,000 BTC, still contains 125,651 BTC ($8.66 billion). This Bitcoin dump caused brief panic in the market, retracing a breakout and trapping retailers. Despite this, Bitcoin has shown resilience and recovery.
Mt. Gox, once a leading Bitcoin exchange, suffered a catastrophic hack in 2014, resulting in losses exceeding $450 million and forcing its closure. The recent transfers have reignited concerns about the fate of the remaining funds held by the disgraced platform. Blockchain intelligence company Arkham Intelligence reports Mt. Gox still holds 137,892 BTC ($9 billion). The recent transfers have reignited concerns about the fate of the remaining funds held by the disgraced platform.
Bitcoin’s Resilience Tested as Bulls and Bears Clash
Despite the initial panic, Bitcoin has demonstrated remarkable resilience, quickly recovering from the May 27th dip caused by the Mt. Gox transfers. As of today, the flagship cryptocurrency is trading at $67,791, with a 24-hour loss of 1.15% and a 4.59% weekly decline.
Technical analysts remain bullish, citing Bitcoin’s ability to swiftly rebound from the sell-off as a testament to its underlying strength. However, caution prevails as the crypto community braces for potential aftershocks from the Mt. Gox saga.
Bitcoin has faced significant resistance in the $72,000-$74,000 price range. This range has been a formidable barrier, halting several upward attempts. A successful breach above this resistance could lead to a substantial rally, potentially pushing Bitcoin to new highs. However, if the resistance holds, Bitcoin may consolidate or face minor retracements. In this scenario, the 100-day moving average at $64,700 will serve as crucial support.
Factors Influencing Bitcoin’s Price
The anticipation of the U.S. Securities and Exchange Commission’s (SEC) final decision on the spot ether ETFs also influenced the Bitcoin dump. Although the SEC approved the ETFs, there was no significant change in Bitcoin prices. Over the last 24 hours, Bitcoin’s price ranged between $68,183 and $69,506.
Bitcoin has declined around 19.59% from its peak of $73,750, dropping below $60,000 in the first week of the month. Currently, the market is grappling with regulatory scrutiny, with the SEC targeting significant crypto players like Consensys. Additionally, the hype around Spot Bitcoin ETFs is cooling.
Blackrock ETF experienced outflows for the first time since it began trading in January, with nearly $36.9 million leaving the fund. This indicates that even institutional investors are affected by market sentiments and FUD (Fear, Uncertainty, and Doubt).
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