Bitcoin Price Drops Below $61K as Trader Holds Firm on $150K Forecast for 2021

Bitcoin and other major cryptocurrencies saw significant drops in value during trading hours in Asia, undoing gains seen earlier in the week. The decline was partly linked to concerns surrounding potential large Bitcoin sales from the now-defunct Mt. Gox exchange, which is preparing to distribute assets stolen in a 2014 hack later this month. Despite the short-term market turbulence, one trader remains steadfast in predicting a Bitcoin price of $150,000 by the end of this year.

BTC led the decline, falling from over $62,000 to $60,900 as Tokyo markets opened, with losses of up to 3% observed across other cryptocurrencies like ether (ETH), Solana’s SOL, and dogecoin (DOGE). XRP remained relatively stable, while Cardano’s ADA saw a slight retracement following a rally on Tuesday as its development foundation published specific compliance indicators to meet European regulatory standards.

The CoinDesk 20 (CD20), a comprehensive index of major tokens, dropped more than 1.7% over the past 24 hours. This downturn coincided with U.S.-listed exchange-traded funds (ETFs) linked to Bitcoin recording outflows of $13 million, breaking a streak of five consecutive days of inflows.

Concerns about potential significant Bitcoin sales following Mt. Gox’s asset distributions likely contributed to the bearish sentiment in the market, as highlighted by Singapore-based QCP Capital in a recent Telegram broadcast. The uncertainty surrounding the release schedule of up to 140,000 BTC from Mt. Gox is expected to continue weighing on the market sentiment.

Mt. Gox is scheduled to commence the distribution of assets stolen in the 2014 hack in July 2024, with repayments to be made in Bitcoin and Bitcoin Cash. This distribution could exert selling pressure on both markets, as previously reported. However, some traders maintain a positive long-term outlook, anticipating a potential rally to $150,000 once the Mt. Gox distribution process concludes.

Tom Lee, the head of research at Fundstrat Global Advisors, expressed optimism about a market rebound in the second half of the year, citing the disappearance of a significant market overhang in July. Lee initially predicted in February that Bitcoin could reach $150,000 in 2024 due to factors like demand from spot ETFs, reward halving, and Federal Reserve interest-rate cuts.

Edited by Sheldon Reback.