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The ongoing crypto repayments of Mt.Gox creditors have escalated the recent crypto pessimism fueled by heightened selling pressure from Bitcoin (BTC) miners and whales. According to on-chain data from Glassnode, more than 21k Bitcoins worth more than $1.2 were sent to cryptocurrency exchanges in the past week.
On-chain data shows that several Bitcoin and Ethereum (ETH) whales, who had collateralized loans on different decentralized applications (Dapps), were liquidated in the past 24 hours.
In the past 24 hours, more than $636 million has been liquidated from crypto derivatives trading, mostly by long traders.
Coinpedia reported that the fear and greed index has dropped from 44, neutral, to 29, fear, in the past 24 hours.
What Next?
With Mt.Gox expected to continue with its crypto distribution in the next three months, amid the ongoing Bitcoin sales from the German and the United States governments, we are in a major capitulation akin to the FTX collapse.
From a technical standpoint, if the flagship coin fails to regain $56k as a support level, Bitcoin’s price could find a solid support level of around $52,500 in the near term.
Is the Macro Crypto Bull Cycle Over?
The possibility of a cycle top for the 2024 crypto bull run can not be fully ruled out, but past major bull cycles indicate the rally is far from over. Some crypto analysts have argued that the 2024 bull cycle is largely similar to the 2017 cycle, which experienced several 25-30 percent pullbacks before reaching a top of around $20k.
Meanwhile, Matrixport has argued that the crypto bull cycle will eventually rally as the U.S. general election nears amid the anticipated interest rate cuts. Additionally, the crypto market will eventually follow the major stock indexes, which have been hitting new all-time highs led by the S&P 500.