In recent days, the crypto landscape has been shaken by a significant drop in the price of Bitcoin, which has seen a drop of more than 14% in just four days. This movement culminated in a particularly sharp decline of 7% in the last 24 hours and a drop of 22.2% in the month.

The global cryptocurrency market cap is $2.03 trillion, down 4% from the last day.

Why Is Bitcoin Dropping So Much Today?

One of the main factors behind Bitcoin’s dramatic decline to $53,500 is the impending distribution of 142,000 BTC by the bankrupt exchange Mt. Gox, which represents 0.68% of the total Bitcoin supply. The recent movements of 52,633 BTC suggest preparations for a large-scale disbursement, an event that market analysts are closely watching due to the potential for a massive sell-off by the exchange’s creditors.

“The psychological impact of this distribution likely led to pre-emptive selling among Bitcoin holders, further amplifying market jitters,” market observers report.

Additionally, the German government’s decision to liquidate part of its Bitcoin holdings has impacted the market. In a period of fifteen days, the government reduced its holdings from 50,000 BTC to 42,274 BTC, causing concern among investors about the possibility of continued price pressure.

The market was also hit by a wave of long position liquidations, where $212 million worth of BTC was liquidated in 48 hours, marking the most significant liquidation since April. Such liquidations often trigger further forced selling, increasing market volatility.

Another relevant factor is the capitulation of Bitcoin miners, which intensified after the reduction of the mining reward from 6.25 to 3.125 BTC, resulting from the Bitcoin halving. The 7.7% drop in hashrate and the decrease in mining revenue indicate a difficult period for miners.

Finally, spot Bitcoin ETF activity in the US has slowed, defying expectations of a market revival through institutional investment. Lead on-chain analyst James “Checkmate” Check estimates that only 20% of current spot volume is derived from these ETFs, with the remainder coming from traditional spot markets.

Disclaimer:

The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.

Source: https://portalcripto.com.br/por-que-o-bitcoin-esta-caindo-tanto-hoje/



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