Bitcoin Declines for Third Day Amid U.S. Election Uncertainty
Bitcoin’s price fell to $57,837.7 on Bitget at 2 PM CET time on July 4.
According to CoinGecko, the cryptocurrency fell by 4% in 24 hours and 22.1% over four months since reaching its all-time high of $73,737.94 on March 14, 2024.
Political Uncertainty and Mt. Gox Fears
Bloomberg attributed the decline to U.S. political uncertainty and concerns about Mt. Gox clients selling off their cryptocurrency. Investors are speculating if President Joe Biden will withdraw from the election, as urged by his Democratic Party colleagues. Polymarket predicts a 55% chance Biden will step down before the August 19 convention.
Standard Chartered suggested that bitcoin’s price might partly depend on Biden’s decision to remain in the race.
Mt. Gox Compensation Plans
On June 24, Mt. Gox’s administrators announced plans to start compensation payouts. By the end of 2024, they aim to distribute 142,000 bitcoins (around $9 billion), 143,000 Bitcoin Cash coins ($53 million), and ¥69 billion.
Market participants worry about the total compensation amount and potential selling pressure on bitcoin’s price.
JPMorgan’s Bitcoin Forecast
JPMorgan analysts predict that most Mt. Gox payouts will occur in July, leading to further bitcoin price drops. They expect the price to recover in August.
ALTA – Blockchain Lab Predicts Bitcoin Market Growth
Analysts from ALTA – Blockchain Lab predict liquidity accumulation in the Bitcoin market this summer. They attribute this to the anticipation of autumn events, such as the U.S. elections and potential ETF approvals.
Major price shifts may not happen over the summer, but notable corrections could offer opportunities for position accumulation. Additionally, macroeconomic conditions and new Bitcoin Layer-2 Scaling Projects could positively influence Bitcoin’s price, potentially impacting it closer to autumn.
Ethereum and Other Cryptocurrencies
Ethereum’s price fell to $3,167, losing 4.3% in 24 hours. Other major cryptocurrencies, including XRP, BNB, Cardano (ADA), Dogecoin (DOGE), and Toncoin (TON), followed bitcoin’s decline, dropping 4.5% to 6%. Solana (SOL) decreased the most, falling 6.5% to $134.41.
Top Gainers and Losers
Worldcoin (WLD) saw the largest growth among the top 100 cryptocurrencies, increasing by 6%. Conflux (CFX) dropped the most, falling 13%.
Trader Liquidations
Coinglass, which tracks trader activity, reported 102,000 liquidated positions on crypto exchanges in 24 hours. The total liquidation amount exceeded $260 million, with $68 million in bitcoin and $65 million in Ethereum. This indicates traders using leverage lacked sufficient funds to cover their positions.
