Bitcoin and other major cryptocurrencies saw a significant drop in prices during Asian trading hours, erasing gains from earlier in the week. The decline was linked to concerns about potential large sales of BTC from the now-defunct Mt. Gox exchange, which is expected to distribute assets stolen in a 2014 hack later this month.
BTC led the decline, dropping to $60,900 from over $62,000 as Tokyo markets opened, with other tokens like ether (ETH), Solana’s SOL, and dogecoin (DOGE) also experiencing losses of up to 3%. XRP remained relatively stable, while Cardano’s ADA saw some pullback from a rally earlier in the week due to the publication of certain compliance indicators by its development foundation.
The CoinDesk 20 (CD20), a comprehensive index of major tokens, fell more than 1.7% in the past 24 hours. Additionally, U.S.-listed exchange-traded funds (ETFs) tracking bitcoin recorded outflows of $13 million after five consecutive days of inflows.
Concerns about potential large BTC sales following the Mt. Gox distribution contributed to bearish sentiment in the market. The defunct exchange is set to start distributing assets stolen in the 2014 hack in July 2024, potentially adding selling pressure to both bitcoin and bitcoin cash markets.
Despite the short-term turbulence, some traders remain optimistic about the long-term outlook for BTC. Tom Lee, the head of research at Fundstrat Global Advisors, reiterated his prediction of a $150,000 BTC price target, expecting a sharp rebound in the second half of the year once the Mt. Gox distribution is completed.
Lee initially forecasted the $150,000 price target for BTC in 2024, citing factors such as demand from spot ETFs, reward halving, and Federal Reserve interest-rate cuts. He believes that the resolution of the Mt. Gox overhang in July will pave the way for a significant rally in the cryptocurrency market.
It is important to note that CoinDesk, the source of this information, is a reputable media outlet covering the cryptocurrency industry. The publication recently underwent changes in ownership but continues to adhere to strict editorial policies to maintain journalistic independence.
In conclusion, while the recent price drop in cryptocurrencies may be concerning to some investors, long-term bullish outlooks for BTC, including the $150,000 price prediction, suggest that there could be significant upside potential in the future. As always, it is essential for investors to conduct thorough research and consider the risks involved in the volatile cryptocurrency market.