- Crypto market experiences sharp decline, Bitcoin falls below $55,000.
- The German government’s Bitcoin sale adds to market pressure.
- Mt. Gox creditor payments raise concerns of further BTC sell-offs.
The crypto market experienced a sharp decline in the past few hours. The leading digital asset, Bitcoin (BTC), fell below the $55,000 price level while Ethereum (ETH) dropped below $3,000, as per CoinMarketCap. The unexpected market meltdown has led investors to wonder if the bull market is over.
Crypto analyst Ali Martinez asked in a post on platform X (formerly Twitter) if this is the beginning of the end.
He noted that in the current cycle, investors have seen the approval of spot Bitcoin exchange-traded funds (ETFs) in January, meme coin rallies, and celebrities launching their own altcoins. He said:
But what if that was it? What if we’ve already hit euphoria and are now feeling complacent, thinking, “we just need to cool off for the next rally?
As previously reported, Benjamin Cowen, the chief executive of IntoTheCryptoverse, said that “boring summers” are not uncommon in the digital asset space. He highlighted that investors also saw a similar situation last summer.
The Bitcoin price fall can be attributed to a myriad of factors but mainly to the German government selling its Bitcoin holdings. Arkham Intelligence data lays credence to this when the authorities transferred 1,300 BTC to Bitstamp, Coinbase, and Kraken, worth approximately $75.53 million; they further transferred 1,700 BTC to wallet 139Po, worth $99 million. The German government still holds 40,359 BTC worth around $2.2 billion.
Also, the fear that the creditors of the defunct exchange Mt. Gox might sell their BTC has heightened investor concern. Notably, Mt. Gox holds 142,000 BTC, 143,000 BCH, around 69 billion yen and had hinted at creditor repayments to start in July.
As noted by crypto reporter Colin Wu, Mt. Gox had made several test payments. However, the exchange had also transferred a whopping 47,229 BTC to an unknown address, as per Arkham data.
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