Large capital flows and whale movements
Another influx hit the BTC ETF on July 3. In altcoins, a crypto whale sold millions of dollars worth of coins, incurring significant losses. Leading blockchain analytics tool Lookonchain said the whale or organization sold 3.13 million LDO tokens for $5.77 million, 49,771 AAVE tokens worth $4.54 million, 269,177 UNI tokens worth 2, 41 million USD and 250,969 FXS tokens worth 708,000 USD.
Liquidation increased
The market was also hit hard by increased liquidations. Just yesterday, BTC liquidations reached 14 million USD, but today, this number has increased to 36 million USD. These large-scale liquidations caused widespread selling, further driving BTC prices down.
The miners' struggle
Currently, the capitulation of BTC miners is one of the main factors contributing to the price drop. The mining community is under stress due to persistently low hash rates leading to reduced income. As a result, many miners are selling their BTC to stay afloat or switching to other proof-of-work tokens to maintain profits.
Government action causes panic
The German government's actions have increased market fears. Recently, the government has been moving BTC around, causing panic among investors who were pre-selling their holdings ahead of potential market impacts, even though the government hasn't sold any coins yet. .
Market sentiment is bearish
The general market sentiment has turned bearish. Charts tracking Bitcoin flows across spot and derivatives exchanges are currently showing a negative outlook, with red indicating bearish sentiment and green indicating bullish sentiment.
