Bitcoin (BTC) Today, the major tokens erased the gains made at the beginning of the week as they dropped below $61,000.

Bitcoin Drops Below $61K Amid Mt. Gox Distribution Concerns, ETF Outflows

The decline coincided with U.S.-listed Bitcoin exchange-traded funds (ETFs) experiencing net outflows of $13 million on Tuesday, ending a five-day streak of inflows.

Bitcoin fell from over $62,000 to $60,900 shortly after Tokyo markets opened. The losses, Ethereum (ETH), Solana’s SOL ve Dogecoin (DOGE) It reached up to 3% for other major cryptocurrencies, including .

In contrast, XRP remained relatively unchanged, while Cardano’s ADA gave back some of the gains from Tuesday’s rally, driven by its development foundation’s compliance with European regulatory requirements.

The declines in cryptocurrency prices were accompanied by US-listed ETFs tracking Bitcoin reporting net outflows of $13 million and a break in a five-day streak of inflows.

According to Singapore-based QCP Capital, concerns over potential major BTC sell-offs following the defunct Mt. Gox exchange’s rollout likely contributed to the bearish sentiment.

“The Mt. Gox release is also scheduled to occur this week,” QCP Capital said in a Telegram post on Tuesday. “This glut of up to 140,000 BTC should continue to weigh on markets, especially since the exact release schedule is currently unknown.”

After years of delayed deadlines, Mt. Gox, which was hacked in 2014, will begin distributing assets to former customers in July 2024. Refunds will be made in Bitcoin and Bitcoin cash, potentially adding selling pressure to both markets.

Despite the short-term bearish outlook, some investors remain bullish over the long term.

Fundstrat Global Advisors research director Tom Lee reiterated his optimistic prediction that BTC could rise to $150,000 once the Mt. Gox distribution is complete.

“One of the biggest overhangs will disappear in July. I think that’s a reason to expect a sharp recovery in the second half,” Lee told CNBC in an interview on Tuesday.

Lee first predicted in February that BTC could reach $150,000 in 2024, citing factors such as demand from spot ETFs, the upcoming bitcoin reward halving, and expected interest rate cuts by the Federal Reserve.

*This is not investment advice.

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