The price of Bitcoin has recovered after hitting its lowest point in over four months. As per CoinGecko, the cryptocurrency is up 4.1% in the last 24 hours peaking at just over $56,400.
In the last 24 hours the price of Bitcoin has gone as high as $57,109, according to Coingecko.Bitcoin had dipped to $53,717.34 the day before, its lowest since late February 2024, triggering one of the largest realized losses since the FTX collapse, specifically the 5th biggest realized loss since, according to crypto analysts.
“On July 5 [2024], within a one-hour resolution, Bitcoin’s aggregated realized loss soared to $814 million. $587 million of these losses were incurred by short-term holders who had held Bitcoin for one to three months. This demographic’s reaction to market turbulence highlights the vulnerability of short-term holders compared to their long-term counterparts.”
– James Van Straten
Staraten notes that long-term holders however exhibited resilience, contributing minimally to the selling pressure.
“This stability from seasoned investors indicates confidence in Bitcoin’s long-term prospects, contrasting sharply with the short-term market fluctuations driven by newer entrants reacting to immediate news events.”
The drop was also attributed to announcements that the trustee for Mt. Gox was moving more billions worth of the cryptocurrency and later had begun making payments to certain creditors. The German Federal Criminal Police Office also moved over $75 million of Bitcoin it held to crypto exchanges.
BITCOIN | Mt. Gox Moves Over 47,000 Bitcoins (BTC) to New Wallet Ahead of Planned Repayments in July 2024
In late June 2024, the defunct #Bitcoin exchange announced that it would begin distributing over $9 billion worth of funds in Bitcoin, Bitcoin Cash, and fiat currency to… pic.twitter.com/LtTvx9tGZo
— BitKE (@BitcoinKE) July 5, 2024
However, Julio Moreno, Head of Research for CryptoQuant, does not see the latter reasons as bearing much significance in the market at the moment.
“Prices have fallen mostly due to selling/profit taking from large investors (whales) and mid-size miners,” he stated via Telegram.
“Selling from Mt. Gox and other entities (German Government) is relatively small compared to the overall pool of money in Bitcoin.”
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