Why is $BTC dumping ❓
While the cryptocurrencies market and crypto industry have been dumping, there are many factors combined to lowering prices in almost all crpyto assets.
Bitcoin's price has experienced a significant decline in the past week due to a combination of several factors, and here is my investigation and collection for the main reasons of market volatility last couple weeks.
1️⃣ One significant factor is the potential liquidation of a large Bitcoin holding by the German government. Reports suggest that the German Federal Criminal Police Office (BKA) held approximately 50,000 BTC, seized from a piracy site in 2013, now valued at over $3 billion.
The news of this potential liquidation has likely triggered a sell-off in the Bitcoin market.
2️⃣ Another contributing factor is the overall sentiment in the cryptocurrency market. The Crypto Fear and Greed Index, which measures market sentiment, has dropped from 60 to 49 in just 13 days, moving from "Greed" to the edge of "Neutral" territory. This change in sentiment can lead to increased selling pressure as investors become more cautious.
3️⃣ Additionally, the market has seen a decrease in large transactions (over $100,000) by 42% in just a couple of days. This suggests that "whales 🐋 " or large investors have been less active in the market, which can lead to increased volatility.
4️⃣ Finally, the announcement by Mt. Gox, a cryptocurrency exchange that was hacked in 2014, to begin repaying its creditors has also contributed to the market's downturn. This news has created uncertainty and led to increased selling pressure.
It's important to note that while these factors have contributed to the recent decline in Bitcoin's price, the cryptocurrency market is highly volatile and influenced by a wide range of factors.
