- Bitcoin (BTC) falls to the $60,000 zone, losing 7.67% of recent gains.
- Transfers of $1.1 billion in Bitcoin and $521 million in Ethereum from bankrupt Genesis Trading are driving bearish sentiment in the market.
Today, the price of Bitcoin (BTC) fell to $60,000, losing its recent gains. Despite a brief rally over $65,500 during Asian trading hours on August 2, Bitcoin’s price dropped 7.61% over the past day. At the time of writing, Bitcoin traded at $61,672 with a market cap of $1.21 trillion.
The global cryptocurrency market is facing a sharp correction due to fears of a potential U.S. recession, which has also impacted Wall Street. Major indices on Wall Street fell between 1.5% and 2.5% on Friday, and Bitcoin mirrored this sentiment.
Earlier on Friday, a weak U.S. jobs report led to a drop in bond yields and the dollar, typically a scenario that boosts risky assets like stocks and Bitcoin. However, this was not the case today; it soon succumbed to the risk-off mood, falling back from the high of $65,468 to the low of $60,452.
Adding to the bearish trend in the market, Genesis Trading is suspected of beginning creditor repayments \this month. The situation with Genesis is similar to Mt. Gox, which started repaying its creditors last month. Mt. Gox has already released 59,000 BTC out of the 142,000 BTC owed.
According to Arkham Intelligence, recently, 16,600 BTC (approx $1.1 billion) and 166,300 ETH (approx $521 million) were moved from wallets linked to the bankrupt Genesis Trading. This move is likely to result in in-kind repayments to creditors.
Can Bitcoin Climb to $65K Amid Market Pressures?
The Bitcoin market has already been dealing with the effects of the German government’s sale of 50,000 BTC in early July and the start of distributions from the Mt. Gox exchange. Now, the actions of Genesis Trading add to the list of supply shocks affecting the crypto market. Increased BTC supply can lead to price drops due to supply and demand dynamics. This can also heighten market volatility and create bearish sentiment among traders.
Further, popular crypto analyst Ali Martinez satiated significant losses for investors who had heavily bet on Bitcoin’s price surge, in a post on X (formerly Twitter) on August 1. According to Coinglass data, over $2.5 billion in leveraged long positions were liquidated when Bitcoin fell below $63,000.
Currently, Bitcoin is struggling to maintain its price near the $61,000 zone. If BTC fails to hold this level, it might test lower support zones. The $60,000 zone is currently acting as strong support, and a continued decline could push BTC to $60,400 and $59,950. Further drops could see Bitcoin revisiting its early July low of $55,500.
On the other hand, if Bitcoin manages to stay above $61,850, it could signal a recovery, potentially rising to $62,600. Trading above this level might push Bitcoin to $63,250 and $65,100. A move beyond $65,000 could trigger further rallies, setting a target of $70,000.
