🆕 Update on BTC Liquidations 📉
In the past 24 hours, the Bitcoin market has witnessed over $122 million in leveraged long positions liquidated as Bitcoin's price fell below the $61,000 mark. Specifically, the total liquidation value includes $108 million from long positions and $52.9 million from short positions (CoinTelegraph) (Coinalyze).
📊 Reasons for BTC's Sharp Decline 🔻
Selling Pressure from Mt. Gox: One major factor contributing to this price drop is Mt. Gox starting to process repayments, potentially flooding the market with a large amount of Bitcoin. Mt. Gox owes approximately $9.4 billion to 127,000 creditors, and selling this Bitcoin could create significant selling pressure (CoinTelegraph).
Bitcoin Movement by the German Government: Recently, a wallet labeled by the German government moved nearly 6,500 BTC, raising concerns about potential sales of this Bitcoin, adding further pressure on the market (CoinTelegraph).
Technical Indicators: Bitcoin has become oversold based on the Relative Strength Index (RSI), which often leads to additional sell-offs as traders adjust their positions (CoinTelegraph).
📝 Summary
The recent sharp decline in Bitcoin's price is mainly due to external factors such as selling pressure from Mt. Gox and movements by the German government. Additionally, technical indicators show the market is in an oversold condition, contributing to the price drop.
