Bitcoin – Cointacted

Bitcoin Ascends Towards Resistance Level of $100,000

Friday’s Bitcoin surge saw it momentarily cross the $97,000 mark. Over the past two weeks, Bitcoin is gradually approaching the crucial $100,000 resistance level, which has proved difficult to breach. Bitcoin was trading at $96,777, a 1.5% rise at 11:49 a.m IST. Its intraday high, at $97,739, indicated great momentum.

Altcoins and Ethereum Also Gain

Rising by 1.6% to trade at $3,452 Ethereum matched the rising trend of Bitcoin. Other main altcoins also showed notable increase. XRP grew by 3.6%; Solana gained 2.7%; Cardano jumped by an amazing 11.5%; Stellar rose by 9%. These price swings helped the worldwide crypto market capitalization to rise generally 1.5% to $3.41 trillion.

Investor attitude has changed favorably according to the Fear-Greed Index. The near $97,000 trading level of Bitcoin reflects this increasing hope. Edul Patel, CEO of Mudrex, claims that while support for Bitcoin at $95,000 exists, it is now immediately opposed at $98,400. Finding the future direction of bitcoin will depend critically on this range.

BuyUcoin CEO Shivam Thakral underlined the institutional interest in Bitcoin’s recent rise. He noted the approaching major milestone of U.S. spot Bitcoin ETFs’ increasing popularity. These ETFs just have $2.2 billion left to reach $110 billion in cumulative value. With over 5.7% of Bitcoin’s total supply represented here, this statistic highlights the growing institutional investor confidence.

The trading activity on the market still revolves mostly on stablecoins. Comprising 92% of the 24-hour volume of cryptocurrencies, the total volume of stablecoins in the past 24 hours came at $108.1 billion. This trend emphasizes how dependent on stablecoins liquidity across the market is.

Bitcoin’s Dominance and Market Capitalization Get

Over 24 hours, Bitcoin’s market capitalization rose to $1.913 trillion. Rising at 56.22%, the dominance of the cryptocurrency in the market also changed. Activity in trading has been strong; the 24-hour volume of Bitcoin jumped 41.6% to $41.3 billion.

At $100,000, Bitcoin is almost at a critical level that might define its future course. Growing ETF acceptance and institutional curiosity help to inspire investor confidence. Strong performance of altcoins also adds to the general good attitude in the market. Still, the next few days will depend much on resistance levels and market conditions.

Disclaimer: The views and opinions expressed in this blog post are solely those of the author(s) and do not necessarily reflect the official policy or position of Cointacted. Any content provided herein is for informational purposes only and should not be construed as financial, investment, legal, or other professional advice. Readers are encouraged to seek independent advice and conduct their own research before making any investment decisions.

Donald Trump’s return to the White House has rekindled debates about how his presidency could reshape the global economy, particularly when it comes to digital assets like Bitcoin, Ether, and more. While at one point Trump was a vocal opponent and skeptic of cryptocurrency even having called it a scam, he has since drastically changed course and has openly praised and embraced the crypto landscape.

His recent interactions with major figures in the industry, coupled with reports of potential crypto appointments in key financial departments, suggest a shift toward a policy framework that’s more open to blockchain innovation. That said, there are some lingering questions about how he’ll reconcile his newly pro-crypto stance with traditional financial institutions and regulatory agencies.

Let’s take an honest look at Trump’s changing relationship with digital assets, and what that could mean for markets and investors in 2025 and beyond.

Trump’s Evolving View on Cryptocurrencies
For years, Donald Trump criticized Bitcoin and other cryptocurrencies, dismissing them as threats to the dollar’s dominance. He regularly voiced concerns about volatility, security, and the possibility of crypto undermining the national currency.

However, in recent years his perspective has shifted dramatically. During his 2024 campaign, Trump surprised many by adopting a pro-crypto stance, stating that digital assets could boost the U.S. economy and calling for clearer regulations to encourage innovation. This about-face coincided with Bitcoin surpassing $100,000 in December 2024, suggesting a link between his endorsement and a surge in market confidence.

Further fueling optimism, Trump has signaled a willingness to appoint crypto advocates to influential roles, ranging from the Securities and Exchange Commission to the Commodity Futures Trading Commission. Reports also highlight his interest in a strategic Bitcoin reserve and crypto advisory councils, indicating that he might push for broader acceptance of digital currencies.

While these moves contrast sharply with his earlier skepticism, supporters applaud Trump’s open-minded approach and see it as proof of crypto’s growing clout in mainstream politics. Critics, meanwhile, question whether the policies will align with a free-market ethos or evolve into an overly regulated environment.

Potential Policy Shifts
As President, Donald Trump could introduce a wave of changes to crypto policy at the federal level. Reports suggest he might push for clearer guidelines on whether digital assets like Bitcoin fall under the jurisdiction of the SEC or CFTC, aiming to resolve conflicts that have confused investors and stifled innovation.

Trump has also hinted at appointing crypto advocates to key leadership roles in agencies such as the Treasury Department and Commodity Futures Trading Commission. Should these appointments materialize, they may pave the way for more favorable regulations by reducing the currently ‘gray’ areas that many crypto platforms operate in and streamlining the process for new crypto products to be approved.

Trump has even floated the idea of creating a strategic Bitcoin reserve, a notion that, if pursued, could mark a significant departure from previous administrations’ cautious stances. This policy would reflect a broader view of Bitcoin as a hedge or alternative asset. The potential drawback, however, is that too much government involvement could lead to overregulation, dampening the free-market ethos many cryptocurrency enthusiasts cherish.

Only delicately balancing pro-crypto enthusiasm with national economic goals will likely be a delicate act, and early decisions under Trump’s leadership could set the tone for how the nation and even the world handles digital assets over the next four years or more.

Help From Big Coin Stacks
A crucial factor in advancing pro-crypto policies may be the influence of major players holding large sums of digital assets. Prominent companies like MicroStrategy, known for amassing significant Bitcoin reserves, have already taken steps to propose frameworks that integrate crypto into mainstream finance. Additionally, high-profile exchanges such as Crypto.com have engaged with Trump’s team , hoping to ensure a friendlier regulatory environment. These big coin stacks can wield substantial sway, whether through lobbying or collaborative partnerships designed to develop new financial infrastructure.

In parallel, outspoken industry figures from billionaire entrepreneurs to major fund managers, could lend substantial support to Trump’s crypto objectives by voicing public endorsement or providing expert guidance on policy. Their backing, in turn, might attract further institutional investment and spur additional corporate adoption. Yet questions remain about whether this alignment of private wealth and public policy might give certain stakeholders outsized influence over emerging regulations. If managed carefully, however, these heavyweight partnerships could accelerate adoption and cement America’s position at the forefront of digital asset innovation.

Regulatory Environment
Under previous leadership, varying interpretations by bodies such as the SEC and CFTC led to confusion for investors and crypto firms. Now, with Trump’s pro-crypto stance, many in the industry hope for uniform guidelines that promote both innovation and consumer protection.

Talk of merging or clarifying the jurisdictions of regulatory agencies has stirred optimism, especially among DeFi projects hoping to build legitimacy. The biggest challenge still seems to be striking the right balance. Overly strict rules stifle creativity and limit the growth of many promising startups, often driving blockchain entrepreneurs overseas. On the other hand, too little oversight can lead to renewed concerns over fraud and market manipulation.

It’s worth noting that a hybrid approach that leans on transparency without suffocating growth could help strengthen the industry as a whole, while simultaneously reassuring traditional investors. As Trump’s appointees begin shaping policy, seeing how they handle stablecoins, DeFi platforms, and cross-border crypto transactions will reveal the administration’s true priorities.

Wider Reach & Global Implications
Should the United States adopt more crypto-friendly policies under Trump, the ripple effects may reach well beyond American borders. Improved clarity could attract international businesses eager to tap a vast consumer market, potentially positioning the U.S. as a global hub for digital asset innovation. This could intensify competition with jurisdictions like Europe and Asia, which have already established comprehensive crypto frameworks. A shift like this could also influence global financial flows, with multinational corporations and institutional investors more inclined to experiment in a receptive environment.

Final Thoughts
From an evolving outlook to potential institutional backing, Trump’s crypto comeback could reshape the digital asset landscape. Whether it leads to lasting benefits or unintended pitfalls depends on how effectively his administration balances innovation, regulation, and economic priorities in the months ahead. In the meantime, stay informed and agile in your crypto investments.

In the latest development, Anthony Scaramucci, a pro-crypto businessman and SkyBridge managing partner, predicts that China will embrace Bitcoin before the end of 2025.

The Trump Effect? Lately, the Trump win in the US elections has had a very optimistic effect on Bitcoin and the cryptocurrency ecosystem as a whole. Notably, Trump adopted digital assets while contesting for the November 5 election win, promising to create a US strategic reserve of the asset. The idea gained prominence, with other countries weighing in the President-elect’s stance on Bitcoin.

Notably, lawmakers in Canada, Brazil, and Russia have proposed adopting Bitcoin as a treasury reserve asset. Public firms globally have also increased their exposure to the flagship crypto, which has pushed it past $100,000.

At the Bitcoin MENA 2024 Conference today, he stated that the US Bitcoin campaign will pull China back into the “Bitcoin game.” He insisted that China would either adopt Bitcoin as a strategic reserve asset, as other countries would, or officially allow crypto mining.

Notably, Scaramucci compared the U.S. entry into Bitcoin to a “match-selling race,” saying it was impossible for the U.S. to enter Bitcoin without drawing the attention of other countries.

“You are not going to be in a position in the world… where the US is moving towards Bitcoin, and you are not moving towards Bitcoin,” Scaramucci remarked.

Interestingly, former Binance CEO Changpeng Zhao has also suggested that China may adopt a strategic Bitcoin reserve, potentially following a plan proposed by U.S. President-elect Donald Trump. Speaking at the Bitcoin MENA conference in Abu Dhabi, Zhao voiced that smaller countries would likely lead the way in adopting Bitcoin reserves, with larger nations, including China, following suit later.

Notably, Zhao acknowledged the unpredictability of the country’s stance on crypto, citing the government’s lack of transparency. However, he has described the establishment of a Bitcoin reserve as ‘inevitable’ stating, “They have to do it at some point because it’s the only ‘hard’ asset.”

While Bitcoin had faced criticism in the past, however, following Trump’s endorsements, the opinions are now changing. The soaring adoption could set the stage for a massive price uptrend for Bitcoin. The Galaxy Digital CEO Novogratz speculated that Bitcoin would trade at $500,000 per coin if the US established its proposed Bitcoin stockpile.

The cryptocurrency market sentiment is back in “extreme fear” as Bitcoin’s price dropped under $56,000. This recent slump has shaken the market, raising concerns about the future direction of Bitcoin and other major cryptocurrencies.

Arthur Hayes, co-founder of BitMEX, believes Bitcoin could fall further, predicting a price below $50,000 by the weekend.

Crypto Fear & Greed Index Shows Extreme Fear
On September 6, the Crypto Fear & Greed Index , which tracks market sentiment, scored 22, indicating extreme fear among investors. This marked a sharp decline from the previous day when the score stood at 29. Notably, the present score is the lowest since August 8, when the index hit 20.

This shift back into extreme fear signals growing uncertainty among investors. According to the data, Bitcoin has been in the fear region for the past month. Bitcoin’s recent drop in price has contributed to this fear, with its value falling to $55,838.

The sharp decline led to massive liquidations. CT Market Pro data shows that more than $29 billion were liquidated from the market following the dip. Fortunately, after hitting the bottom, Bitcoin began to recover gradually to $56,533.

Meanwhile, BitMEX’s ex-boss, Arthur Hayes, took to X to express his pessimism about Bitcoin. “BTC is heavy,” he said in the post, adding, “I’m gunning for sub-$50K this weekend. I took a cheeky short.”

$BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen, said Arthur Hayes on September 6, 2024.

Hayes is not alone in his bearish outlook, as many traders brace for further volatility.

U.S. Economic Concerns Add to Bitcoin BTC’s Struggles
Concerns about the U.S. economy are adding to Bitcoin’s struggles. Recent U.S. job data fell short of expectations, sparking fears of a sluggish economic recovery.

Many believe this could delay the Federal Reserve’s anticipated interest rate cuts, which would continue to apply downward pressure on Bitcoin.

Bitcoin’s decline also affected other assets in the crypto market. Ethereum (ETH) dropped by 2.23%, Solana (SOL) recorded a 2.82% decline, and XRP lost 2.19%.

This price dip led to significant liquidations. According to CoinGlass data , over $94 million was wiped out in the last 24 hours. The data shows that Long positions were affected the most, with Bitcoin longs accounting for nearly 40% of the total liquidations, followed by $17.36 million worth of Ethereum.

In addition, according to CryptoQuant’s recent blog post , Bitcoin’s activity is losing momentum. The blog post noted that Bitcoin’s daily active addresses have dropped to 838,000, the lowest since 2021. CryptoQuant says it could signify the broader market’s disinterest in Bitcoin.

Despite Bitcoin’s recent decline, CryptoQuant believes this could present a buying opportunity for some investors.

“For some investors, a drop in active addresses and price can be seen as an opportunity to buy Bitcoin in anticipation of a future rally,” says CryptoQuant.

Further, the post suggested that if investors see the price decline as a sign that Bitcoin is losing strength, it may lead to the formation of new price levels.

In addition, Checkmate describes the current Bitcoin price movement as “chopsolidation.” According to the analyst, “The swings are getting larger and more sustained.”

While the future remains uncertain, investors closely monitor market sentiment and key economic indicators. The coming days will be critical for the market, whether Bitcoin dips below $50,000 or stages a recovery.

Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.

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After witnessing one of the biggest global IT outages on record, which affected the travel, finance, and healthcare industries worldwide , this week is ready to see more political drama, events, and earnings reports from tech giants.

Let’s take a look at what awaits us:

Major companies will release their earnings report Major tech and other companies will release their earnings reports this week, paving the way for how the second half of 2024 will look like.

Monday. Verizon will release earnings before the opening bell.

Tuesday. Coca-Cola, Comcast, and UPS are set to release their earnings before the market opens. In the morning, Tesla will report earnings, while General Motors will report earnings in the evening. Alphabet and Visa will release earnings after the closing of the market. Wednesday

AT&T will report before the opening of the market. Ford and Chipotle will report earnings after the bell. Thursday

AstraZeneca, American Airlines, and Southwest Airlines earnings reports will come before the market opens. Trump will speak at the Bitcoin conference The presumptive Republican presidential nominee, Donald Trump, will speak at the upcoming Bitcoin Conference in Nashville, Tennessee , which is scheduled for July 25-27. While this would be the first time a presidential candidate would attend the conference, it has sparked a debate about whether crypto-friendly Trump will receive support from the crypto community in the upcoming election.

Besides Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names that will attend the conference.

Ether ETFs are on the way New spot Ether ETFs are expected to begin trading on Tuesday, July 23rd. Like spot Bitcoin ETFs, these ETFs will allow investors to purchase the second most popular cryptocurrency as stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are set to offer Ether ETFs. Crypto asset manager Bitwise predicts that Ether ETF trading will boost Ether’s price, and it may surpass $5,000.

Japanese firm Metaplanet continues accumulating Bitcoin tokens, adopting a buy-the-dip strategy amid the ongoing decline. Metaplanet purchased 42.47 BTC coins worth 400 million yen ($2.42 million) when BTC fell to a low of $54,500 earlier in the day.

Metaplanet’s accumulation comes amid heightened fear among investors as crypto asset volatility increases.

Often tagged Asia’s MicroStrategy due to its aggressive Bitcoin accumulation, Metaplanet has expanded its holdings, leveraging Bitcoin’s depressing price.

The company’s additional 42.47 BTC ($2.5 million) purchase brings its total holdings to 203.734 coins valued at 2.05 Billion yen (approximately $12 million). This purchase is the company’s fourth accumulation within the last four months.

*Metaplanet purchases additional 42.47 $BTC* pic.twitter.com/dPotWszW1Y

With the latest purchase, Metaplanet’s market cap is currently at 14.5 billion yen. Its BTC holdings account for over 2 billion of its market cap value.

Metaplanet sees Bitcoin as a reserve asset to cushion the effects of economic problems in Japan. The company established its Bitcoin trading strategy by establishing a subsidiary in the British Virgin Islands. It aims to leverage the growth opportunities in the global crypto space to uphold its expansion strategy.

*Metaplanet establishes wholly-owned BVI subsidiary to enhance strategic $BTC management* pic.twitter.com/plmQ3xp72W

Top industry analyst Dylan LeClair is the driver of its recent Bitcoin accumulations. Dylan LeClair recently started working as Metaplanet’s Director of Bitcoin Strategy to help advance its BTC focus.

Recently, LeClair and Mike Peterson discussed the economic revival of El Salvador, one of the first countries to adopt Bitcoin as legal tender, on a YouTube Podcast .

According to LeClair, El Salvador’s embrace of BTC improved its economy. The podcast also covered Metaplanet’s BTC strategy and global Bitcoin adoption.

Following the recent BTC acquisition announcement, Metaplanet’s Stock price increased. The company adopted a Bitcoin-friendly strategy. Metaplanet stock has gained 382% in 2024, with much of these gains attributed to its Bitcoin holdings.

Metaplanet Stock hit a high of ¥107 last month but currently trades around ¥ 80. Impressively, Metaplanet’s shareholders have confirmed several changes in their investment strategies.

The company amended its Article of Incorporation to fit its new BTC-focused business plans. Metaplanet’s shareholders also approved a share consolidation plan that will merge ten common shares into one from August 1, 2024.

This new plan will reduce the number of authorized shares from 65 million to 22.82 million. Five new directors were elected to boost Metaplanet’s operations and promote the new Bitcoin strategy.

*Metaplanet amends articles for $BTC strategy, approves 10:1 share consolidation, increases authorized shares from 22.8M to 65M, elects five new directors* pic.twitter.com/F0ZGWgJ218

Metaplanet’s directors authorized a massive Bitcoin purchase in June 2024 using proceeds from a recent bond sale.

Although the price of BTC continues to decline, Metaplanet’s recent purchase confirms its confidence in Bitcoin’s long-term potential. Metaplanet’s strategies also confirm its drive for massive growth and expansion in the crypto space.

Bitcoin was set for its biggest weekly fall in more than a year on Friday, as traders fretted over the likely dumping of tokens from defunct Japanese exchange Mt. Gox and further selling by leveraged players after the cryptocurrency’s strong run.

The price of the world’s largest cryptocurrency slid as much as 8% on the day to $53,523, its lowest since late February.

It was on track for a more than 12% weekly decline, its biggest since early November 2022.

Rival token Ether slid 9% to $2,841 to more than a two-month low.

Media reports said Mt. Gox, the world’s leading exchange for cryptocurrencies before it collapsed a decade ago, may start returning bitcoin to creditors, who are seen as likely sellers since the token’s worth was only hundreds of dollars in 2014.

“The selling pressure is still related to creditor selling from the failed Mt Gox exchange,” said Tony Sycamore, a market analyst at IG.

“However, the acceleration to the downside suggests the market is trying to get ahead of the creditor flows.”

Analysts have also pointed to worries over the possibility of Joe Biden being replaced as the Democrats’ presidential nominee by someone less pro-crypto after a shaky debate performance with rival candidate Donald Trump.

“What’s striking about this slide in Bitcoin is it comes as U.S. stocks and global equity indexes rest at or near record highs – the correlation between Bitcoin and mainstream equities is fraying,” said Antoni Trenchev, co-founder of crypto platform Nexo.

Bitcoin had a strong start to the year after the launch of exchange-traded funds in the U.S., propelling it to a record $73,803.25 in mid-March. However, it has since struggled.

“With an asset that has been rangebound for quite a while and recently in the lower end of that range, there are plenty of margined positions,” said Justin D’Anethan at digital assets market maker Keyrock.

“This of course creates a cascading effect, pushing prices further down than it might in a market with less leverage.”

Bitcoin has not reached the top of its current appreciation cycle and is likely to go past its all-time high this year, according to a research report released by CCData on Tuesday.

Bitcoin hit an all-time high of above $73,700 in March but has since been trading within a range between roughly $59,000 and $72,000.

The journey to the record high in March was largely driven by the approval and launch of the spot bitcoin exchange-traded funds, or ETFs, in the U.S. in January. They have attracted net inflows to date of around $14.41 billion to date, according to CCData, market data provider focused on digital assets.

ETFs allow investors to buy a product that tracks the price of bitcoin without owning the underlying cryptocurrency. Crypto proponents say this has helped legitimize the asset class and make it easier for larger institutional investors to get involved.

The bitcoin “cycle” refers to the period in which the digital currency ascends to a new record high, then falls again to enter a bear market or “crypto winter.” These cycles — of which three have now been completed since the launch of bitcoin — have tended to follow a similar pattern.

That has been centered around an event called the halving, during which the reward for miners is cut in half, reducing the supply of bitcoin onto the market.

Typically, halving often occurs months before bitcoin hits an all-time high for the cycle. This current cycle has been different. Bitcoin rose to its latest record high before halving due to the bullishness around the ETFs in the U.S.

With bitcoin trading within a range after the all-time high, many have questioned whether the cryptocurrency has reached the top of the current cycle.

CCData’s report, which examined historical bitcoin price movements, suggests it can reach a new height. The data and research firm said historical trends have shown that the halving event has always preceded a period of price expansion that can last anywhere from 366 days to 548 days “before producing a cycle top, with each halving experiencing a longer cycle than the one prior, due to maturation of the asset class and lowered volatility.”

The last bitcoin halving took place on April 19 this year, so those historical timeframes have yet to pass.

“Moreover, we have observed a decline in trading activity on centralised exchanges for nearly two months following the halving event in previous cycles, which seems to have mirrored this cycle. This suggests that the current cycle could expand further into 2025,” CCData said.

The analysts acknowledged that the “influence of institutional participants in the industry” in the current cycle has “altered the previous trends,” adding that low trading activity is likely to take place in the third quarter, which could in turn suggest more sideways price action.

“However, the data and previous trends are strong enough to suggest that any sideways price action is temporary, and we are likely to breach the previous all-time highs once again before the end of the year,” CCData said.

The company’s report said that the upcoming launch of an Ethereum ETF in the U.S. and other similar products around the world “is destined to bring further capital, liquidity and demand to the asset class.”

CCData highlighted another key historical data point to support its thesis, saying that the price appreciation of bitcoin takes place over a short time. For example, in the 2012 cycle, 91.4% of bitcoin’s overall price expansion from halving to the record high happened in the four months before the cycle peak. This share of price increase was 78.8% and 71.5% in the four months before the respective record highs of the 2016 and 2020 cycles.

“Such parabolic expansion is yet to be made in the current cycle,” CCData said.

Other commentators have highlighted how historical patterns in bitcoin have played out.

“Historically, market cycles peak 12 to 18 months after a Bitcoin Halving, which last took place in April of this year. We also haven’t seen volatility reach prior peak highs. Lastly, prior market cycle peaks coincided with a rapid succession of all time highs – upwards of 10 to 20 new highs set in a 30-day window,” Thomas Perfumo, head of strategy at cryptocurrency exchange Kraken told CNBC by email.

“We haven’t triggered any of these signals yet,” Perfumo said.

The 12-18 month timeline after halving was also highlighted by Vijay Ayyar, head of consumer growth for APAC at cryptocurrency exchange Gemini. He said that bitcoin has potentially not yet reached the top of the currency cycle.

Ayyar suggests that since bitcoin has been holding around the $60,000 for several months, it implies that investors are accumulating bitcoin rather than selling.

One aspect to note, according to Ayyar, is if bitcoin does break an all-time high, retail investors could pile in to drive the price higher.

“Going by past cycles again, once price breaks [the] all-time high convincingly, mass retail activity picks up aggressively which usually drives prices higher,” Ayyar said.

A bitcoin exchange that collapsed 10 years ago after being hacked is set to return billions of dollars’ worth of the token to users — and it has investors worried.

In a few days, bankrupt Tokyo-based bitcoin exchange Mt. Gox will begin paying back thousands of users almost $9 billion worth of tokens. The platform went under in 2014 following a series of heists that cost it in the range of 650,000 to 950,000 bitcoin, or upward of $58 billion, at current prices.

The payout follows a protracted bankruptcy process that’s involved multiple delays and legal challenges.

On Monday, the court-appointed trustee overseeing the exchange’s bankruptcy proceedings said distributions to the firm’s roughly 20,000 creditors would begin in early July. Disbursements will be in a mix of bitcoin and bitcoin cash, an early offshoot of the original cryptocurrency.

While this is good news for victims of the hack who have spent years waiting to be made whole, the price of bitcoin slid to $59,000 last week, in the crypto market’s second-worst weekly decline of the year.

CNBC spoke to half a dozen analysts to get their take on what to expect when roughly 141,000 bitcoin — or roughly 0.7% of the total 19.7 million bitcoins outstanding — are returned to Mt. Gox victims this week.

Pressure on bitcoin could pick up Mt. Gox — short for “Magic: The Gathering Online Exchange” — was once the largest spot bitcoin exchange globally, claiming to handle around 80% of all global dollar trades for bitcoin.

When it shuttered in February 2014, bitcoin was worth around $600.

Today, the world’s largest cryptocurrency is trading at about $61,000 per coin. That means users opting to be reimbursed in-kind — that is, in the cryptocurrency itself, rather than the cash equivalent — have seen the value of their coins surge over 10,000% in the last decade.

John Glover, chief investment officer of crypto lending firm Ledn, told CNBC the windfall for Mt. Gox users would likely translate to huge sales in bitcoin as investors look to lock in gains.

“Many will clearly cash out and enjoy the fact that having their assets stuck in the Mt. Gox bankruptcy was the best investment they ever made,” said Glover, who was previously a managing director at Barclays. “Some will clearly choose to take the money and run,” added Glover.

James Butterfill, head of research at CoinShares told CNBC the overhang of the nearly $9 billion of bitcoin set to be released has “long been a concern for those with bullish views on bitcoin.”

″Consequently, the market is highly sensitive to any related news. With the announcement that the Trust will begin selling in July, investors are understandably worried,” said Butterfill.

It wouldn’t be the first time bitcoin’s moved in reaction to big redemptions of funds locked up in centralized trading platforms.

Last month, crypto exchange Gemini returned more than $2 billion worth of bitcoin to users with funds that had been trapped in its Earn lending program, marking a 230% recovery after bitcoin prices more than tripled since Gemini suspended Earn withdrawals on Nov. 16.

JPMorgan analysts linked this to negative price action, saying in a research note last week that it’s “fair to assume that some of Gemini creditors, which are mostly retail customers, have taken at least partial profits in recent weeks.”

Similarly, JPMorgan analysts expect Mt. Gox customers to be similarly inclined to sell some of their bitcoin to profit from seismic gains for the cryptocurrency.

“Assuming most of the liquidations by Mt. Gox creditors take place in July, [this] creates a trajectory where crypto prices come under further pressure in July, but start rebounding from August onwards,” they wrote.

Separately last month, the German government sold 5,000 — worth approximately $305.8 million as of Thursday’s prices — of a 50,000-bitcoin pile seized in connection with the movie piracy operation Movi2k.

The funds were sent to various crypto exchanges, including Coinbase, Kraken, and Bitstamp, according to blockchain intelligence firm Arkham Intelligence.

Analysts say these crypto liquidations, too, have placed pressure on bitcoin’s price.

Mt. Gox customers expected to hang on to their bitcoin Most analysts agree losses in bitcoin are likely to be contained and short-lived.

“I think that sell-off concerns relating to Mt. Gox will likely be short-term,” said Lennix Lai, chief commercial officer of crypto exchange OKX.

“Many of Mt. Gox’s early users as well as creditors are long-term bitcoin enthusiasts who are less likely to sell all of their bitcoin immediately,” he said, adding previous sell-offs by law enforcement, including the Silk Road case, did not result in a sustained catastrophic price drop.

Butterfill suggested there’s enough market liquidity to cushion the blow of any possible mass market sell action.

“Bitcoin has maintained a daily trading volume of $8.74 billion on trusted exchanges this year, suggesting that liquidity is sufficient to absorb these sales over the summer months,” said Butterfill.

According to CCData research analyst, Jacob Joseph, the markets are more than capable of absorbing the selling pressure.

“Moreover, a healthy part of the creditors are likely to take a 10% haircut on their holdings to receive the repayment early, and not all holdings are set to be liquidated on the open market, reducing the overall selling pressure,” he said.

Recent price moves suggest the temporary impact of the Mt. Gox repayments may already be priced in, Joseph added.

Galaxy Digital’s head of research, Alex Thorn, believes fewer coins will be distributed than people think, meaning there will be less sell pressure than the market expects.

However, he also wrote in May that, even if only 10% of the bitcoin distributed is sold, “it will have a market impact.”

“Most of the individual creditors will have their coins deposited directly into a trading account at an exchange, making it extremely easy to sell,” Thorn said.

Vijay Ayyar, head of consumer growth for Asia-Pacific at crypto exchange Gemini, said that the overall impact of the Mt. Gox disbursement is likely to be “dissipated,” given the recipients of the funds are varied.

On the one hand, there are individual holders who will get their bitcoin straight away. Then there’s the “significant amount” of bitcoin that will be disbursed out to claims funds, Ayyar said.

“Those funds would then need to distribute these out to their LPs [limited partners], hence the whole process could take a while adding a time element to the impact on price,” he told CNBC.

Macro headwinds behind bitcoin’s fall It’s worth noting there are plenty of other reasons behind bitcoin’s recent declines.

The cryptocurrency had a stunning rally earlier this year, climbing past $70,000 on the heels of the U.S. Securities and Exchange Commission’s approval of the first spot bitcoin ETF.

But investors have remained anxious amid outflows from bitcoin ETFs and sizable market liquidations. The broader macro environment, too, has investors worried.

Earlier this month, the Federal Reserve suggested it plans to cut rates just once this year, down from the multiple cuts it had indicated previously.

Cryptocurrencies, which are inherently volatile, are particularly sensitive to changes in the interest rate environment.

CoinShares’ Butterfill said the Fed’s new rate forecast was among “the likely culprits for the recent price decline” in bitcoin.

This, along with other issues, is “likely to weigh on prices in the lower volume summer months,” Butterfill said. However, “the fundamental investment case remains very much intact,” he added.

Recently, altcoin holders have faced significant stress due to market movements over the past five weeks. Major shifts and turning points often involve extreme pain and patience, causing many to give up. But one has to remember that altcoins can gain momentum only when Bitcoin dominance decreases. Ethereum ETF discussions are heating up, with approvals and trading expected in the first week of July.

The Bitcoin dominance chart shared by Derek on X shows the current situation mirroring peaks in 2017 and 2021, signaling the start of an altcoin bull market. At this critical juncture, there’s a major shift between sellers and buyers.

The upcoming Ethereum ETF S-1 is expected to be a game changer, drawing attention from Bitcoin whales. I believe the altcoin market will react in anticipation before the Ethereum ETF S-1 launch in mid-July. There will be volatility during this period, but staying calm and patient is key to navigating it.

Crypto Crusader predicts that July will be a highly bullish month for the crypto market. If the ETF gets approved, altcoin holders should brace for impact. Ethereum is expected to lead the market, reducing Bitcoin’s dominance and boosting ERC20 projects. This could trigger a rapid altseason, and Bitcoin may reach $80,000 to $100,000 or more by the end of the summer.

He wrote, “If we see the ETF approval happen in the first week, altcoin holders you need to buckle up. Ethereum will start to lead the market and steal the show away from Bitcoin.”

Analyst Moustache noted on X that the 3W Gaussian-Channel has turned from red to green, signaling a buy, similar to 2020. With prices holding above the EMA 10, he suggests this could precede one of the biggest altcoin seasons.

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