Bitcoin (BTC) has "crashed" in the last few hours, trading for a few minutes below $60,000.
At the time of this publication , each bitcoin is trading for $60,300 on major exchanges.
This drop is closely related to the outflow of money that occurred yesterday, July 2, from the spot bitcoin ETFs that are traded on the US markets.
The following chart, taken from the SoSoValue platform , shows that a streak of several "green" days (with positive capital flow) was broken for these investment funds:
Capital flows into and out of Bitcoin ETFs – Source: SoSoValue.
Investors are probably looking to secure a foothold in anticipation of the imminent release of bitcoins that have been held captive by the bankrupt Mt. Gox exchange for 10 years.
But even if these 140,000 BTC were released and absolutely all of the exchange's creditors decided to sell them (which is unlikely to happen) the impact would not be that big .
Note that Bitcoin ETFs, while having negative cash flow days, are holding nearly 900,000 BTC. They have absorbed a large part of the supply, so that Mt. Gox-related move can be considered minor. Of course it would impact the price, but it should not be a long-term drop.
In the medium and long term, expectations remain bullish for bitcoin. Based on on-chain metrics and fundamental analysis) of trader Willy Woo thinks that BTC will have several more weeks of lateralization, and then resume the bullish path that would take it to new historical highs.
Complementing Woo's opinion, Matthew Dixon, an entrepreneur and market analyst, shows that the pattern that the price of bitcoin is currently showing "is very typical of consolidation before the continuation of the bullish trend that is still in force."
Bitcoin’s move would anticipate an upcoming bull run – Source: Matthew Dixon – X.
If history repeats itself, bitcoin should see a significant price increase approximately 6 months after the halving. Therefore, by the last quarter of the year, the long-awaited rally could take place that will take bitcoin to heights never seen before.
