TL;DR
- Bitcoin continues to decline, falling below $60,000, a 3.1% decrease in the last 24 hours.
- Mt. Gox is expected to release up to 140,000 BTC this week, which could add downward pressure on BTC prices.
- The market for US election-themed meme coins has suffered significant drops, with several tokens losing up to 95% of their value.
Bitcoin continues to decline, falling below $60,000 during the European morning on Wednesday, a decrease of 3.1% in the last 24 hours. Its plunge has resulted in a chain reaction, extending the downward trend to the entire cryptocurrency market. The CoinDesk 20 Index registered a 3.3% decrease. The retreat coincides with the setback suffered by BTC ETFs, which recorded outflows of over $13 million after five consecutive days of inflows.
In addition to the capital outflows from ETFs, there is growing concern among investors about the possible Bitcoin sales from the defunct exchange Mt. Gox. Up to 140,000 BTC are expected to be released this week, which could cause considerable pressure on BTC prices, especially considering that the exact distribution schedule is still unknown.
The market for US election-themed meme coins has suffered a drastic fall. Several of these tokens have faced losses of nearly 95% from their peak prices. For example, Jeo Boden (BODEN), based on Solana, has fallen 70% in the last week, returning to levels not seen since early March. Even Donald Trump-themed meme coins have dropped, despite the increase in his chances of winning, driven by the results of the recent debate.
The political finance (PoliFi) sector has contracted by 11% in the last 24 hours, contrary to expectations of experiencing a rally following the June 27 debate. According to Austin Freimuth, a research analyst at Messari, a trigger event could be Trump’s selection of his running mate, which could lead to the creation of new meme coins.
The Market Grows Despite Bitcoin’s Current Negative Performance
Despite the current market fluctuations, it is going through a growth phase. According to a quarterly report from investment firm Architect Partners, the value of the crypto industry increased by more than $750 billion in the first half of the year. The market is recovering from the so-called “crypto winter” relatively quickly.
A recent technical analysis shows that Bitcoin has failed to maintain its price above a descending trendline. The next support is at $56,500, a level last touched at the end of April.
Regarding other major cryptocurrencies in the market, we also find declining prices. Ethereum (ETH) lost 2.8% of its value, with its current price at $3,306. BNB (BNB) fell by 3.15% and is around $557 per unit. Solana (SOL) experienced a drop of 3.83%, with its current value at $142.2. As for XRP (XRP), the decrease was smaller, at 1.87%, leaving its value at around $0.4742. Cardano (ADA) was also less affected, down 1.2% and trading at $0.4077. On the other hand, Dogecoin (DOGE) suffered a 3.25% reduction, with its current value at $0.1189.
