Bitcoin Drops Below $65,000 as Analysts Attribute Decline to Market Sentiment, Not Mt. Gox Sell-Off

Bitcoin has dipped below the $65,000 mark for the first time in six days, but analysts suggest that this drop is not linked to potential sales from Mt. Gox creditors. Experts believe that the decline in Bitcoin’s price is primarily due to shifting market sentiment and seasonal trends rather than the expected sell-off from the infamous Mt. Gox exchange. CryptoQuant founder Ki Young Ju stated that “the instant dump you worried about didn’t occur,” emphasizing that market reactions are more closely connected to sentiment than external selling pressures.

The recent decline of about 2.5% leads many to speculate on Bitcoin’s ability to hold support at this price range. Currently trading at $64,247, Bitcoin’s drop has voided approximately $24.68 million in long positions based on data from CoinGlass. Analysts point out that various factors, including a recent launch of spot Ether exchange-traded funds (ETFs) and the political climate, may also contribute to the downward trend. Cane Island Alternative Advisors’ Timothy Peterson noted a historical pattern of underperformance for Bitcoin during the period from July 22 to September 22.

Moreover, the overall market sentiment seems fairly neutral to slightly optimistic despite the recent dip. The Crypto Fear and Greed Index has recorded a “Greed” score of 68, indicating a more positive outlook among traders compared to the previous week. While some traders label the recent price movements as temporary corrections, they remain hopeful for future gains, especially as they look towards trends in the coming months.