FXEmpire analyst Bob Mason said that the People's Bank of China (PBOC) stopped buying gold in May, which sparked speculation about a shift to bitcoin and cryptocurrency markets. He mentioned that China's return to the cryptocurrency market could offset the supply surge caused by the Mt. Gox payouts to creditors. With recent market trends indicating mounting pressure on the cryptocurrency markets due to the Mt. Gox repayment and possible government sell-offs of bitcoin, Bob asks, "Will China's return to the cryptocurrency market change the balance as investors gear up to absorb the impact?" Due to fears that Mt. Gox would supply the market with bitcoin payouts to creditors, wiping out the impact of bitcoin's halving event, investors are flocking to the cryptocurrency arena. Mt. Gox plans to return over 141,000 bitcoins to creditors, worth over $8.5 billion. In addition, the cryptocurrency market expects that creditors will sell their bitcoin to reap substantial profits. When Mt. Gox went bankrupt in February 2014, bitcoin closed at less than $5,600, almost 10% of its current value almost a decade later. However, the German and US governments also hold large reserves of bitcoin. Recently, the German government sent bitcoin to an exchange for sale, sparking speculation about larger-scale sales plans. The US government's seizure of bitcoin from the Silk Road case also puts bitcoin and the cryptocurrency market at risk of massive sell-offs. Recently, Arkham Intelligence shared a dashboard that displayed graphical representations of bitcoin holdings, historical balances, and the latest trades of the largest government holders of bitcoin. According to reports, the US government holds 213,297 bitcoins, far exceeding the approximately 141,000 bitcoins Mt. Gox will return to creditors. Bob raises the question, "Can the Chinese government rebalance the supply-demand imbalance?" In June, FXEmpire senior editorial team member and author James Hyerczyk discussed the possibility of China's return to the cryptocurrency market. As reported, the People's Bank of China stopped buying gold in May, sparking speculation about a shift to bitcoin and cryptocurrency markets. James also emphasizes the growing appeal of bitcoin as a tool to hedge against a weak US dollar. Bloomberg reported on Monday, July 8, that China's central bank did not buy gold for the second consecutive month, and gold prices have fallen from record highs. Bob points out that China's return to the cryptocurrency field may solve the supply problem that affects cryptocurrency price trends. "If the other side of the transaction is China, will the US stop selling bitcoin? In summary, concerns about oversupply continue to affect buyers' demand for bitcoin. The US government's large holdings of bitcoin have led to the risk of bitcoin and the wider cryptocurrency market being sold off again. However, if China returns to the cryptocurrency market, it may rebalance the market." He continued that investors must remain cautious due to the supply-side risks. Monitor real-time data and expert comments to adjust your trading strategy accordingly. Bob mentioned that bitcoin is still well below the 50-day and 200-day EMA, confirming the put price signal. If bitcoin breaks above the 200-day EMA, it may push bulls to launch an attack at the $60,365 resistance. If it breaks through the $60,365 resistance, bitcoin may aim for the 50-day EMA. On the other hand, breaking below the support level of $52,884 may indicate a drop to $50,000. The 14-day RSI reading for bitcoin is 27.72, in the oversold zone. The low point of $53,591 on July 5th could exacerbate buying pressure.

Recent market trends indicate that the cryptocurrency market is facing immense pressure due to external factors such as the Mt. Gox repayments and possible government sell-offs of bitcoin. Bob asks, "Will China's return to the cryptocurrency market change the balance as investors gear up to absorb the impact?"

Due to the fear of Mt. Gox supplying the market with bitcoin payouts to creditors, wiping out the impact of bitcoin's halving event, investors are flocking to the cryptocurrency arena.

Mt. Gox plans to return over 141,000 bitcoins to creditors, worth over $8.5 billion. In addition, the cryptocurrency market expects that creditors will sell their bitcoin to reap substantial profits. When Mt. Gox went bankrupt in February 2014, bitcoin closed at less than $5,600, almost 10% of its current value almost a decade later.

However, the German and US governments also hold large reserves of bitcoin.

Recently, the German government sent bitcoin to an exchange for sale, sparking speculation about larger-scale sales plans. The US government's seizure of bitcoin from the Silk Road case also puts bitcoin and the cryptocurrency market at risk of massive sell-offs.

Recently, Arkham Intelligence shared a dashboard that displayed graphical representations of bitcoin holdings, historical balances, and the latest trades of the largest government holders of bitcoin. According to reports, the US government holds 213,297 bitcoins, far exceeding the approximately 141,000 bitcoins Mt. Gox will return to creditors.

(Source: Arkham)

"Can the Chinese government rebalance the supply-demand imbalance?" Bob raises the question.

In June, FXEmpire senior editorial team member and author James Hyerczyk discussed the possibility of China's return to the cryptocurrency market.

As reported, the People's Bank of China stopped buying gold in May, sparking speculation about a shift to bitcoin and cryptocurrency markets.

James also emphasizes the growing appeal of bitcoin as a tool to hedge against a weak US dollar.

Bloomberg reported on Monday, July 8, that China's central bank did not buy gold for the second consecutive month, and gold prices have fallen from record highs.

(Source: Bloomberg)

Bob points out that China's return to the cryptocurrency field may solve the supply problem that affects cryptocurrency price trends.

"If the other side of the transaction is China, will the US stop selling bitcoin? In summary, concerns about oversupply continue to affect buyers' demand for bitcoin. The US government's large holdings of bitcoin have led to the risk of bitcoin and the wider cryptocurrency market being sold off again. However, if China returns to the cryptocurrency market, it may rebalance the market." He continued that investors must remain cautious due to the supply-side risks. Monitor real-time data and expert comments to adjust your trading strategy accordingly.

Bob mentioned that bitcoin is still well below the 50-day and 200-day EMA, confirming the put price signal.

Bitcoin Technical Analysis

Bob mentioned that bitcoin is still well below the 50-day and 200-day EMA, confirming the put price signal.

If bitcoin breaks above the 200-day EMA, it may push bulls to launch an attack at the $60,365 resistance. If it breaks through the $60,365 resistance, bitcoin may aim for the 50-day EMA.

On the other hand, breaking below the support level of $52,884 may indicate a drop to $50,000.

The 14-day RSI reading for bitcoin is 27.72, in the oversold zone. The low point of $53,591 on July 5th could exacerbate buying pressure.

(Source: FXEmpire)