Bitcoin Falls Below $60,000: What Triggered the Drop?

• Stacey George
• June 5, 2026
• Market
• 0 Comments

Bitcoin fell below $60,000 on June 24, 2024, dropping as low as $59,334 as the Mt. Gox repayment announcement triggered a broad crypto selloff and pushed market sentiment into extreme fear territory.

The decline followed a notice from Mt. Gox’s rehabilitation trustee confirming that repayments in Bitcoin and Bitcoin Cash would begin from the start of July 2024. The prospect of over 141,000 BTC entering circulation spooked traders already navigating a fragile market.

Reuters reported Bitcoin dropped 7.8% to $59,215 by 8:50 PM GMT. CoinGecko market data recorded the price at $59,334, with 24-hour trading volume surging to $67.5 billion as sellers overwhelmed bids.

Why the $60,000 Break Matters

The $60,000 level had served as a psychological floor for Bitcoin throughout much of 2024. A decisive break below it signaled that buyers were unwilling to defend the range, opening the door to further downside.

The Mt. Gox trustee noted that repayment preparation included technical safeguards, regulatory compliance checks, and coordination with cryptocurrency exchanges. The sheer scale of the overhang, with over 141,000 BTC worth more than $8 billion held by the estate, amplified selling pressure as traders front-ran potential distributions.

Liquidation Cascade Deepened the Selloff

More than $122 million in leveraged BTC long positions were liquidated in the 24 hours leading up to 1:25 PM UTC on June 24. Forced selling from liquidated longs accelerated the move through key support levels.

According to unconfirmed reports from crypto media, a German government-labeled wallet also moved nearly 6,500 BTC during the same period, adding to the supply pressure weighing on the market.

How the Drop Affected the Broader Crypto Market

Bitcoin’s breakdown did not stay contained. With BTC dominance at 55.7%, the largest cryptocurrency’s decline pulled altcoins lower across the board. Bitcoin Cash, which is also part of the Mt. Gox repayment plan, faced additional selling pressure from the same supply overhang concerns.

The Fear & Greed Index plunged to 12, a reading classified as Extreme Fear. That marked one of the lowest sentiment readings of the year and reflected a decisive shift to risk-off positioning across crypto markets. Lawmakers have also been examining the crypto sector more broadly, with the House Ways and Means Committee releasing crypto tax drafts that could shape how digital asset gains are treated.

Total crypto market capitalization contracted sharply as the selloff spilled into derivatives markets. The combination of spot selling, liquidation-driven unwinding, and the Mt. Gox overhang created a feedback loop that dragged prices lower throughout the session.

Altcoin Contagion

When Bitcoin breaks a major level, altcoins typically suffer disproportionate losses as traders reduce risk exposure. The elevated trading volume of $67.5 billion in BTC alone pointed to broad de-risking, not isolated profit-taking. Exchanges like SBI VC Trade, which recently expanded its digital asset services, saw heightened activity as users repositioned portfolios.

What Traders and Investors Should Watch Next

The immediate question is whether Bitcoin can reclaim $60,000 or whether the Mt. Gox distribution timeline will keep a ceiling on any recovery attempts. The trustee’s announcement set July 2024 as the start date, meaning weeks of uncertainty lie ahead.

Key Signals to Monitor

For a bullish case, traders will want to see BTC reclaim and hold above $60,000 on rising volume, with the Fear & Greed Index recovering from its Extreme Fear reading. A stabilization in liquidation volumes would also suggest selling exhaustion.

The bearish scenario involves continued front-running of Mt. Gox distributions, with the $8 billion BTC overhang acting as a persistent headwind. If Bitcoin fails to reclaim $60,000 within the coming sessions, the next area of interest lies at prior consolidation zones from earlier in 2024. Broader market developments, including innovations like the prediction markets gaining traction on platforms like Bitget Wallet, suggest crypto infrastructure continues to grow even during periods of price stress.

With BTC market capitalization at $1.19 trillion even after the drop, Bitcoin remains the anchor asset for the entire crypto sector. How the market absorbs the Mt. Gox repayments beginning in July will likely set the tone for the rest of the summer.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.