Thu, July 04, 2024 at 10:47

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some significant news regarding Bitcoin.

  • For the first time since May, Bitcoin has dropped under $58,000, marking a 5% loss in just 24 hours.

  • 
• Annie

  • Oh, that's quite a drop!😮 What caused this sudden decline?

  
• 

  Kang-hoon

  • There are a few factors at play.

  • One major reason is the activity in the Mt.

  • Gox wallets.

  • These wallets, which have been dormant for a month, showed signs of activity with test transactions.

  • This hints at potential asset distributions and increased selling pressure.

• Annie

  • Mt.

  • Gox?

  • Isn't that the exchange that was hacked years ago?

  • What does this mean for the market?

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • Yes, Mt.

  • Gox was hacked in 2014.

  • The wallets are scheduled to start distributing assets stolen from clients this month, although the exact timing is still unclear.

  • These repayments will be made in Bitcoin and Bitcoin Cash, which could add selling pressure to both markets.

• Annie

  • I see.

  • So, the market is reacting to the potential influx of Bitcoin and Bitcoin Cash.

  • What else contributed to the price drop?

  
• 

  Kang-hoon

  • Another significant factor is the German Federal Criminal Police Office moving over $75 million to crypto exchanges.

  • This move has created speculation about a potential sell-off, further driving down the price.

• Annie

  • Wow, that's a lot of money.

  • How did the market react to these movements?

  
• 

  Kang-hoon

  • The market reacted negatively.

  • 

  • Bitcoin fell below a widely followed technical indicator for the first time since October, signaling a possible downtrend in the coming months.

• Annie

  • That doesn't sound good.😟 What does this mean for investors?

  
• 

  Kang-hoon

  • For investors, this could mean increased volatility and potential losses in the short term.

  • The activity in the Mt.

  • Gox wallets and the German government's actions have created uncertainty, which typically leads to market instability.

• Annie

  • So, should investors be worried about more declines in the near future?

  
• 

  Kang-hoon

  • Yes, it's possible.

  • The market is currently under pressure, and with the potential for more Bitcoin and Bitcoin Cash entering the market, we could see further declines.

• Annie

  • What about the long-term outlook?

  • Is there any hope for recovery?

  
• 

  Kang-hoon

  • In the long term, the market could stabilize once the asset distributions are completed and the selling pressure eases.

  • However, in the short term, the outlook remains bearish.

• Annie

  • Thank you for the detailed explanation, Kang-hoon.

  • So, to sum up, would you say this news is more of a negative development for the market?

  
• 

  Kang-hoon

  • Yes, Annie.

  • Given the current circumstances, this news is indeed a negative development for the market.

  • The increased selling pressure and market uncertainty are likely to have adverse effects in the short term.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.