The recent drop in Bitcoin prices over the past 48 hours can be attributed to several key factors:
1. **Mt. Gox Repayments**: The announcement that the defunct exchange Mt. Gox will begin repaying its creditors in Bitcoin and Bitcoin Cash has raised concerns about a significant increase in Bitcoin supply, leading to potential sell-offs.
2. **German Government Sales**: The German government is preparing to liquidate around 50,000 BTC, adding to market anxiety and selling pressure.
3. **ETFs and Market Sentiment**: Outflows from U.S.-based spot Bitcoin ETFs and a drop in the Crypto Fear and Greed Index indicate waning investor confidence.
4. **Whale Activity**: Large Bitcoin holders have reduced trading activity, signaling caution among major investors.
5. **Cascading Liquidations**: The price drop triggered liquidations in the derivatives market, further exacerbating the decline. These factors combined have created a volatile environment, leading to the recent downturn in Bitcoin prices.