Bitcoin experienced a price correction today due to several key factors :
1. Government Sales : The governments of Germany and the United States have sold significant amounts of Bitcoin. Germany transferred 2,700 BTC to various crypto exchanges, while the US transferred 3,940 BTC to Coinbase Prime accounts. These large-scale sales have exerted downward pressure on Bitcoin's price.
2. Economic Uncertainty : Uncertainty surrounding US monetary policy, including the possibility of interest rate cuts that did not materialize, has caused uncertainty in the crypto market. Statements by Federal Reserve Chairman Jerome Powell, which dampened hopes for further interest rate cuts this year, also influenced market sentiment.
3. ETF Outflows : There have been significant outflows from spot Bitcoin ETFs, with net withdrawals of $37.3 million over the past week. This indicates that institutional investors are reducing their exposure to Bitcoin, leading to a decline in price.
4. Long Liquidations : The derivatives market has also seen significant long liquidations, with total liquidations reaching $339.59 million in the last 24 hours. This shows that many traders betting on a Bitcoin price increase were forced to sell their positions at a loss, exacerbating the price decline.
5. Mt. Gox Distribution : The bankrupt crypto exchange Mt. Gox is scheduled to begin distributing $9 billion worth of Bitcoin to creditors in July. This massive distribution adds selling pressure to the market, considering the large amount of Bitcoin to be released.
The combination of these factors has led to a significant correction in Bitcoin's price today.
$BTC #bitcoinâïž #Bitcoinâ #MtGoxJulyRepayments