Reasons why Bitcoin prices plummeted
While determining the exact cause of Bitcoin's fall from a high of nearly $67,000 to over $61,000 is tricky, there has been a series of recent events that may have prompted traders to be more inclined to sell off, triggering an estimated $100 billion loss in a short period of time. dollar losses.
🔸 Why did the price of Bitcoin plummet?
Just in the middle of this month, the German government began to transfer a large number of Bitcoins seized in January to multiple cryptocurrency trading platforms including Coinbase, Kraken and Bitstamp.
Investors are starting to worry as the Central European country plans to sell as many as 50,000 Bitcoins, a quantity that would be enough to have a significant impact on market prices.
However, historical data shows that government sales of large amounts of Bitcoin, such as the United States’ previous sale of 50,000 Bitcoins seized from the dark web “Silk Road,” did not cause market prices to plummet.
However, market concerns further intensified when it was reported that bankrupt cryptocurrency exchange Mt. Gox would begin distributing assets to creditors in July, including approximately $9 billion worth of Bitcoin. News on June 24 confirmed that the allocation process was about to start, which undoubtedly increased market tension.
💬 “Germany is selling off $3 billion worth of Bitcoin, followed by Mt. Gox selling $9 billion worth of Bitcoin.” - Charles Edwards commented.
In addition to the actions of these large Bitcoin holders, the lackluster market trading volume in early June may also have amplified any market volatility caused by these selling actions.
In addition, recent technical analysis results by several well-known cryptocurrency experts indicate that the market may experience a significant downward trend, further exacerbating investor concerns.
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