Bitcoin Dips Below $70K as Mt. Gox Repayments Begin, But QCP Capital Bullish on Ethereum

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Bitcoin Dips Below $70K as Mt. Gox Repayments Begin, But QCP Capital Bullish on Ethereum
  • Bitcoin has declined further to $67,601 within the last 24 hours.
  • QCP Group anticipates more Bitcoin dip amid Mt. Gox’s impending distribution of around $9.6 billion.
  • Meanwhile, the analysis is optimistic about Ethereum amid the outlook for ETF trading.

QCP Capital, a leading digital asset trading firm and market maker, has issued a bearish forecast for Bitcoin amid the top cryptocurrency’s recent drop to $67,601. The firm anticipates a continued downtrend for Bitcoin due to the impending distribution of around $9.6 billion by Mt. Gox.

Last Thursday, Mt. Gox announced the start of its reimbursement scheme, which aims to compensate its users for past losses. The compensation will be available either in BTC and Bitcoin Cash (BCH) through affiliated exchanges or in fiat currency from the sale of assets. This development follows the infamous 2014 hacking incident in which Mt. Gox lost 850,000 BTC and declared bankruptcy.

Accordingly, wallet addresses linked to Mt. Gox have been identified transferring large sums of Bitcoin, valued at over $9 billion, to undisclosed wallets. This significant movement of funds has contributed to Bitcoin’s fall below the recently attained $71,000 mark.

Meanwhile, DMM Bitcoin, a crypto exchange based in Japan, has reported a loss of 48 billion Yen (equivalent to $305 million) in Bitcoin (BTC) due to a cyberattack. In its analysis, QCP Capital indicated that this recent security breach and the theft of Bitcoin are additional negative indicators for the cryptocurrency’s market sentiment.

In contrast, QCP Capital’s analysis takes a bullish stance on Ethereum, Bitcoin’s closest competitor. The optimism for Ethereum is bolstered by the possibility that spot ETFs for the cryptocurrency might begin trading sooner than anticipated, as early as June. This comes after the U.S. SEC encouraged applicants to file their S-1 forms last Friday.

Despite this, the analysts caution that a complacent market could be taken by surprise, and they are placing their bets on a bullish trend, especially for ETH.

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