Bitcoin may have hit a local bottom after experiencing a significant sell-off in June, according to analysts from Bitfinex exchange. On July 3, Bitcoin’s price dropped below the 120-day range, reaching a low of $53,219 amid concerns about Mt. Gox’s creditor repayments and other issues. Despite Mt. Gox still needing to distribute a significant amount of BTC to creditors, Bitfinex analysts believe that Bitcoin may have reached a local bottom based on market data from the weekend. They also noted that the drop in BTC was partly due to the German law enforcement agency, Bundeskriminalamt (BKA), selling Bitcoin on exchanges. Bitfinex stated that there are several reasons why Bitcoin’s decline should soon come to a halt. One reason is that the BTC transferred to exchanges by the German government is relatively small compared to the total BTC bought and sold since 2023. Additionally, the drop in the spent output profit ratio (SOPR) and negative funding rates suggest that Bitcoin’s price correction may be nearing its bottom. Bitfinex mentioned that historically, periods of negative funding rates and low short-term SOPR values have often marked the end of price corrections.
Bitfinex suggests Bitcoin may have potentially hit a bottom within the local market