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Bitcoin Leads Declines in Asian Trading Hours
Bitcoin takes the lead in declining trends during Asian trading hours, signaling potential market shifts and affecting investor sentiments. Stay informed with the latest updates.
Bitcoin (BTC) took the lead in declines during the Asian trading hours, causing major tokens to erase gains achieved earlier in the week. BTC saw a drop to $60,900 from over $62,000 soon after Tokyo markets opened, with losses of up to 3% across other cryptocurrencies such as ether (ETH), Solana’s SOL, and dogecoin (DOGE). While XRP remained relatively stable, Cardano’s ADA trimmed some of its gains following a rally on Tuesday as its development foundation published certain indicators to comply with European regulatory requirements.
CoinDesk 20 Shows Broad Declines
The broad-based CoinDesk 20 (CD20), which serves as a liquid index of the largest tokens, experienced a decline of more than 1.7% in the past 24 hours as a result of the market movements.
Outflows from Bitcoin ETFs
During this period, U.S.-listed exchange-traded funds (ETFs) tracking bitcoin recorded outflows of $13 million, breaking a streak of five consecutive days of inflows. The concerns about potential large BTC sales following distributions by the now-defunct Mt. Gox exchange have contributed to the prevailing bearish sentiment in the market.
Mt. Gox Distribution Impact
Singapore-based QCP Capital highlighted in a Telegram broadcast on Tuesday the impact of the upcoming Mt. Gox distribution, stating, “The Mt Gox release is also slated to happen this week. This overhang of up to 140,000 BTC should continue to weigh on markets, especially since the exact release schedule is unknown right now.” The distribution of assets stolen in a 2014 hack by Mt. Gox is expected to commence in July 2024, potentially adding selling pressure to both bitcoin and bitcoin cash markets.
Long-Term Bullish Outlook
Despite the current market conditions, some traders maintain a long-term bullish outlook, anticipating a rally up to $150,000 after the completion of the Mt. Gox distribution. Tom Lee, the head of research at Fundstrat Global Advisors, expressed optimism in a CNBC interview, saying, “$150 [thousand] is within reach.” Lee initially predicted in February that BTC would reach $150,000 in 2024 due to factors such as demand from spot ETFs, reward halving, and Federal Reserve interest rate cuts.