The fall of Bitcoin in the summer of 2024, the reasons and the likelihood of renewed growth

The cryptocurrency market has been in decline since early 2024, and Bitcoin is no exception. Since June 2024, Bitcoin's price has fallen another 15%, reaching a new 18-month low.

The current price of the leading cryptocurrency is currently only 56,300 US dollars per coin.

This comes as a surprise to many, as most cryptocurrency market analysts predicted that Bitcoin's price would reach above $100,000 in 2024.

Therefore, a very reasonable question arises: Why did the first cryptocurrency fall in price, what caused the record drop, and what are the chances of a resumption of the upward trend ?

The main reason for Bitcoin's fall in the summer of 2024 was an increase in supply, or more precisely, the anticipation of a large influx of bitcoins to be received as compensation by clients of the bankrupt Mt. Gox exchange. Some of the intended compensation coins have already arrived in the cryptocurrency wallets of those affected.

This event was preceded by other large sales. For example, one of the miners, Marathon Digital, sold 390 coins in May 2024 and announced an imminent sale of even more. Furthermore, German authorities have listed large sums of Bitcoin on leading exchanges, increasing the likelihood of a sale.

The start of the decline also became a signal for ordinary investors to sell cryptocurrencies, who fear an even further price decline.

What is the likelihood of Bitcoin's growth resumption in 2024?

Despite the current decline in the value of the leading cryptocurrency, one can expect Bitcoin's price to rise and reach new highs .

The July decline looks very much like a bearish play, when market makers want to lower the price and then buy the asset at the most favorable price.

We've seen this scenario with Bitcoin more than once, and it always ends with another rise and a new high.

If you look closely, nothing has happened that would objectively cause such a sharp price drop. Reports of small cryptocurrency sales, which are being heavily promoted by news sites, are laughable.

Once the price slows its decline, major investors will begin buying Bitcoin and altcoins again, followed by a predictable price increase. This will happen quite soon, so all that remains is to wait for a reversal and a new upward trend.

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