Analysis: Bitcoin's break below $60,000 resistance is significant and may increase volatility in the short term

Rachael Lucas, an analyst at Australian cryptocurrency exchange BTC Markets, said: "Bitcoin's break below the $60,000 resistance level is significant because it marks a psychological barrier for many investors. If Bitcoin continues to trade below this level, we may see increased volatility in the short term." Bitcoin's recent volatility is largely attributed to the upcoming payouts to Mt.Gox creditors, who are expected to receive about 142,000 bitcoins worth about $9 billion starting in July. Lucas explained that the large repayment of Bitcoin will bring "huge selling pressure" to the market because of the need to absorb the additional supply. Although investors expect two or more rate cuts this year, the Federal Reserve has said that it sees only one rate cut for the rest of the year. "(This) has fueled investor risk aversion," Lucas added. (The Block)