Why is $BTC dumping?

This is the result of combined many factors

Mt. Gox, ETFs, halving, Germany, and much more

I've prepared a full analysis of the current situation 🧵👇

/ Mt. Gox

This cryptocurrency exchange collapsed in 2014 due to a hacking attack.

Late last month, news emerged that Mt. Gox is ready to repay its creditors.

The exchange's representatives will distribute 142,000 BTC (0.68% of total supply) among its clients.

BTC ETF

Spot Bitcoin ETFs have made the cryptocurrency's price more dependent on the sentiments of large investors.

Currently, BTC ETFs hold 5% of Bitcoin's total supply.

At the beginning of this month, there was a renewed outflow from ETFs, and these changes are also putting pressure on the cryptocurrency's price.

Miners

On April 20, 2024, was halving occurred, reducing miners' rewards from 6.25 to 3.125 BTC per block.

For miners to remain interested in their work, a rise in BTC price was necessary, and many were expecting this.

However, it didn’t happen, and many miners are now forced to sell their BTC.

U.S. Interest Rates

The lower the interest rate, the more attractive high-risk investments (such as crypto)

The minutes from the FRS meeting showed that policymakers are unwilling to lower rates until there is more data indicating that inflation is moving toward the target rate of 2%

/ Germany

The German government owns a significant amount of BTC and has started selling its assets.

According to Arkham, the German government recently transferred 400 BTC to the exchanges Bitstamp, Coinbase, and Kraken.

In total, 2,700 BTC have been moved to exchanges from the government's wallet over the past two weeks

Major Investors are not selling BTC

Despite Bitcoin's decline, companies are not selling their assets. On the contrary, many have started buying BTC amidst the drop.

The largest miner, Marathon Digital Holdings, has not disposed of its assets, despite needing to free up capital.

#SOFR_Spike #US_Job_Market_Slowdown #BinanceTurns7 #VanEck_SOL_ETFS #MtGoxJulyRepayments