Bitcoin suffered a sharp selloff on June 25, 2024, plunging below the psychologically critical $60,000 mark for the first time since early May. The flagship cryptocurrency traded as low as $58,601 during intraday trading before recovering slightly to hover around $61,000, shedding over 6% in just 24 hours and extending its weekly losses to more than 7%.
TL;DR
- Bitcoin dropped below $60,000, hitting an intraday low of $58,601 — its lowest level since early May 2024
- Mt. Gox rehabilitation trustee announces Bitcoin and Bitcoin Cash repayments to begin in July 2024, spooking markets
- U.S. Bitcoin spot ETFs recorded $175 million in net outflows on Monday alone, with Grayscale GBTC leading the exodus
- Over $335 million in crypto positions were liquidated in 24 hours, with Bitcoin accounting for $145 million of that total
- German government reportedly selling portions of its seized Bitcoin holdings adds additional selling pressure
Mt. Gox Repayment Announcement Rocks the Market
The single largest catalyst behind the selloff emerged on June 24, when the Mt. Gox rehabilitation trustee, Nobuaki Kobayashi, issued a formal notice confirming that repayments in Bitcoin and Bitcoin Cash to creditors would commence in early July 2024. The defunct Japanese exchange, which collapsed in spectacular fashion in 2014 after losing approximately 850,000 BTC, holds roughly 140,000 BTC earmarked for creditor repayment.
Market participants immediately priced in the risk that creditors — many of whom have waited over a decade to recover their funds — may choose to sell their newly received Bitcoin en masse. With BTC trading at approximately $61,000 at the time, the total value of Mt. Gox holdings set for distribution exceeded $8.5 billion. The prospect of such a large supply overhang hitting the market in a relatively short timeframe sent shockwaves through trading desks worldwide.
The repayment process involves transferring Bitcoin directly to designated cryptocurrency exchanges where creditors hold accounts. This detail amplified fears, as centralized exchange deposits are typically interpreted as a precursor to selling activity by on-chain analysts and algorithmic trading systems.
Bitcoin ETF Outflows Deepen the Wound
Compounding the Mt. Gox anxiety, U.S. Bitcoin spot ETF products continued to hemorrhage capital. Data from Farside Investors revealed net outflows of $175 million on Monday, June 24, following outflows of $106 million on Friday and $140 million on Thursday. Grayscale Bitcoin Trust ETF (GBTC) led the outflows with $90 million in net redemptions, followed by Fidelity Wise Origin Bitcoin Fund (FBTC) at over $35 million, and Franklin Bitcoin ETF (EZBC) recording nearly $21 million in outflows.
The weekly picture looked even grimmer. CoinShares’ Digital Asset Fund Flows Weekly report showed outflows of $584 million during the week ended June 21, following $600 million in outflows the previous week. Through the first three weeks of June, Bitcoin spot ETFs recorded net outflows on 9 trading days compared to net inflows on just 6 days, signaling a clear shift in institutional sentiment.
Liquidation Cascade Wipes Out Leveraged Positions
The rapid price decline triggered a massive liquidation event across crypto derivatives markets. More than $335 million in leveraged crypto positions were liquidated within 24 hours, with Bitcoin long positions accounting for approximately $145 million of the total. The cascading liquidations amplified volatility, creating a feedback loop that pushed prices even lower as forced sellers hit the bid.
Bitcoin’s technical indicators reflected the intense selling pressure. The Relative Strength Index (RSI) dropped into oversold territory, while the hourly MACD gained momentum in the bearish zone. Key support levels at $61,200 and $60,000 were breached in quick succession, with the next major support zone identified at $58,000.
German Government Bitcoin Sales Add to Supply Fears
Reports surfaced that the German government had been actively selling portions of its seized Bitcoin holdings, further contributing to the bearish narrative. Government wallet movements tracked by blockchain analytics firms showed transfers to exchange-linked addresses, typically interpreted as a precursor to over-the-counter or open market sales.
The combination of Mt. Gox distributions, ETF outflows, and government selling created what traders described as a triple threat of supply pressure — an unusual convergence of large-scale selling catalysts hitting the market simultaneously.
Macroeconomic Headwinds and Fed Uncertainty
Beneath the crypto-specific catalysts, broader macroeconomic concerns also weighed on investor sentiment. Market participants were bracing for the release of the Personal Consumption Expenditures (PCE) price index — the Federal Reserve’s preferred inflation gauge — scheduled for Friday, June 28. Persistent inflation readings could further delay anticipated interest rate cuts, reducing the appeal of risk assets including Bitcoin.
The overall cryptocurrency market capitalization contracted to approximately $2.25 trillion, down from $2.27 trillion the previous day. Bitcoin dominance stood at 53.3%, followed by Ethereum at 17.9%, with stablecoins accounting for 7.2% and altcoins making up the remaining 21.6%.
Altcoins Show Resilience Amid Bitcoin Weakness
While Bitcoin bore the brunt of the selloff, select altcoins demonstrated surprising strength. Solana (SOL) jumped 8.6% overnight to trade around $135.60, buoyed by ecosystem developments. Toncoin (TON) rallied 5.2% to $7.59, maintaining its position as the year’s top performer among the top 20 cryptocurrencies with a 229% year-to-date gain. Dogecoin (DOGE) added 2.5%, while Cardano (ADA) gained 3.8%.
Fetch.ai (FET) and SingularityNET (AGIX) surged more than 22% each, driven by renewed interest in AI-related crypto tokens following Apple’s announced AI partnership discussions with Meta. The AI and Big Data crypto category saw its market capitalization jump over 8% in a single day.
Why This Matters
The June 25 selloff represents a critical stress test for the Bitcoin market in the post-ETF era. While the Mt. Gox repayment fears may prove overblown — many creditors are likely to hold rather than sell immediately — the episode exposes how sensitive the market remains to large-scale supply events. The sustained ETF outflows are arguably the more concerning signal, suggesting that institutional enthusiasm that drove Bitcoin to new all-time highs in March 2024 may be cooling. Investors should monitor whether the $58,000–$60,000 support zone holds, watch for any acceleration in Mt. Gox-related exchange inflows, and pay close attention to the PCE inflation data for clues about the Fed’s next moves.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
140k BTC hitting the market from mt gox creditors and people are surprised it dumped below 60k? been saying this for months
the german government selling seized BTC on top of everything else is just brutal timing. double supply pressure with zero new demand catalysts
^ exactly, $175M in ETF outflows in a single day on top of the gox news. retail gonna get crushed
335M liquidated in 24h and 145M of that was BTC alone. these leveraged longs never learn