There are two main reasons for this sharp drop:

First, Germany transferred about $75 million worth of Bitcoin to exchanges such as Coinbase, Kraken and Bitstamp on July 4. Since mid-June, the German government has sold more than $390 million in Bitcoin in less than a month. At today's price, these Bitcoins are estimated to be worth about $2.7 billion.

Second, the Mt.Gox trustee recently announced that it will begin repaying Bitcoin (BTC) and Bitcoin Cash (BCH) in early July 2024. Data shows that as of the end of June, the Mt.Gox trustee held about 140,000 Bitcoins, worth about $9.26 billion.

Although Germany's sale of Bitcoin and the repayment of Mentougou have put great pressure on the liquidity of the market in the short term, this cannot have a decisive impact on the prospects of the bull market. The current market situation is still within the controllable range. Short-term liquidity is exhausted, which is prone to extreme market conditions. Germany's sale of Bitcoin and the repayment of Mentougou are just a fuse.

A recent report from the Grayscale Research team also pointed out that despite a lot of selling pressure in June, including the liquidation of the Mt.Gox bankruptcy estate, the liquidation of the German government, the sale of the US government, and the reduction of Bitcoin miners, etc. However, the spot Ethereum exchange-traded product (ETP) will begin trading in the third quarter of 2024, and if there is no major change in the macroeconomic outlook, the valuation of the cryptocurrency market will recover in the next few months.

Finally, if you are a pure novice and you want to rush into the currency circle when you see BTC hit a record high before, then I suggest you pay attention to me first, learn the knowledge of the currency circle with me, and make up for your basic skills. Only by laying a solid foundation can you go further.

#IO    #NOT    #BOME    #BTC     #ETH🔥🔥🔥🔥