Bitcoin Drops Below $60,000: Where is the Bottom?
On Thursday during the Asian trading session, the cryptocurrency market saw a collective downturn, with Bitcoin briefly dipping below $58,000. Over the past 24 hours, Bitcoin long positions worth $54.9 million were liquidated.
Other major cryptocurrencies and altcoins also experienced significant sell-offs. Ethereum dropped 4.5%, hitting a low of $3,145. Binance Coin (BNB) fell 6%, sliding from $573 to $539. Solana (SOL) plummeted 10.3% in the last 24 hours, falling from a weekly high of $154 to $136 at the time of writing.
Bitcoin has been under pressure in recent months, particularly with Mt. Gox planning to start repaying its creditors approximately $8.5 billion worth of BTC from early July. However, some analysts believe that the repayment impact might not be as severe as others anticipate.
Bitcoin’s decline accelerated this week following the first debate between U.S. presidential candidates Biden and Trump, which raised concerns about Biden being replaced. eToro market analyst Josh Gilbert commented that a replacement for Biden might not be a crypto-friendly candidate.
Looking ahead, on-chain analysis platform CryptoQuant noted that since Bitcoin’s halving on April 19, the total daily revenue for miners has dropped sharply from $79 million on March 6 to the current $29 million. Some miners are selling Bitcoin to hedge against risks.
CryptoQuant added that Bitcoin’s mining hash rate has plunged 7.7% since the halving, indicating that miners are capitulating, which typically signals a bottom in Bitcoin’s price.
Andrew Kang, a partner at the crypto venture firm Mechanism Capital, believes Bitcoin could see further declines, potentially dropping to the $40,000 range.
The phrase “buy the dip” has surged on social media over the past two days, with posting activity on Reddit, Twitter (X), and 4Chan doubling in the same timeframe.
