Bitcoin
What is causing the price of Bitcoin to fall?
What is causing the price of Bitcoin to fall?
The market is all red once again.
Last week, Bitcoin has lost almost $5,000 of its value, falling from a comfortable position above $66,000 to hovering around the $61,000 mark (at the time of writing). This sudden drop left investors and analysts confused.
This sharp drop coincided with a significant change in market sentiment. O Crypto Fear and Greed Index dropped from 60 to 49 in just 13 days, moving from “Greed” to the edge of “Neutral” territory.
The sudden drop in prices and change in sentiment has left many wondering about the underlying causes.
Several important events in crypto appear to have influenced this market movement.
Let’s jump into the details of what’s happening in the Bitcoin market and explore the factors behind this recent crash.
Reason #1: Selling Bitcoin by the German Government
The crypto market has experienced significant turbulence following the news that the German government is preparing to liquidate a substantial stake in Bitcoin.
The German Federal Criminal Police (BKA) held approximately 50,000 BTC, seized from a piracy website in 2013, now valued at over $3 billion.
This news, which came to light a few days ago, likely triggered Bitcoin’s initial drop from $66,000 to $63,000 – as seen on CoinMarketCap.
The prospect of such a large amount of Bitcoin potentially entering the market has understandably caused concern among investors.
Reports suggest that German authorities have already begun the process, selling around 3,000 BTC in the last few days. However, the majority of the stake – 47,000 BTC – has not yet been sold.
The government appears to be taking a measured approach to minimize the impact on the market, but investor anxiety persists.
Reason #2: Big players slamming on the brakes
The second main factor behind the recent drop in Bitcoin prices involves the biggest fish in the market – “whales”.
Here’s what’s happening: whales have suddenly become much less active. Data from Sanction shows that large transactions (over $100,000) dropped by 42% in just a few days. This is a significant change in behavior.
So why does this matter? Well, when whales slow down their trading, it often signals caution. This whale behavior is especially interesting because it occurs right after a period of intense selling.
What does this mean for the market? It could be that these big investors are waiting to see if prices will fall further before they start buying again. Or they may be holding off on selling more to keep prices from falling too quickly.
Either way, when whales go quiet, it’s often a sign that the market is at a crossroads. Its next moves could give us clues about the direction of Bitcoin’s price in the coming weeks.
The story continues
Reason #3: Mt. Gox returns with refunds
The defunct exchange resurfaced and shook things up once again. More than a decade after its collapse, Mt. Gox announced that it will begin repaying its creditors – and the news sent ripples through the Bitcoin market.
Mount Gox Rehabilitation Trustee Nobuaki Kobayashi announced that Bitcoin and Bitcoin Cash payments will begin in early July.
Why is that so important?
Well, Mt. Gox was once the largest crypto exchange before its dramatic closure in 2014.
We’re not talking about a small change. The three Mt. Gox wallets combined hold 141,686 BTC, worth approximately US$8.71 billion.
The fear is simple: As creditors finally get their hands on your long-lost Bitcoin, many may rush to cash it out. This potential flood of Bitcoin hitting the market has investors nervous.
The impact was almost immediate. Bitcoin price plummeted to $61,060, marking a 6.5% drop in just 24 hours. Although it has recovered slightly to around $61,300, the market remains nervous.
It’s not just Bitcoin that’s feeling the heat. Bitcoin Cash (BCH) also took a hit, dropping 9% following the announcement.
Although the refund process is expected to begin soon, it is important to note that it could extend for several months. The repayment deadline was previously extended until October 2024, giving the market some room for maneuver.
Reason #4: Domino Effect
The recent drop in Bitcoin’s price was not just due to external factors. A significant internal market mechanism played a crucial role in amplifying the decline: waterfall settlements in the derivatives market.
Think of it as the crypto world’s version of the domino effect, and it’s been in full swing over the past 24 hours.
Here’s what happened: When the price of Bitcoin started falling, it set off a chain reaction in the derivatives market. According to data from Currency Currency$311.3 million worth of crypto positions were liquidated in just 24 hours.
Of that $305.89 million, $275.75 million were long positions. In simple language, this means that the vast majority of these liquidations hit traders who were betting on the crypto price rising.
This cascade of liquidations is not the root cause of Bitcoin’s price drop, but it certainly hasn’t helped matters.
As the market navigates these questions, it is clear that several factors are at play. The German government’s Bitcoin moves, changes in whale behavior, Mt. Gox repayment plans, and cascading liquidations have contributed to recent price volatility.
While short-term fluctuations can be disruptive, they also provide valuable information about market dynamics. As the dust settles, market participants will be closely watching how these factors evolve and influence Bitcoin’s trajectory in the coming weeks and months.
Photo: Andrew Harnik (Getty Images)
After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.
Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job
Let’s take a look at what awaits us:
Major companies will release their earnings reports
Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.
Monday
- Verizon will report earnings before the start of operations.
Tuesday
- Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
- Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
- Alphabet and Visa will report results after the market closes.
Wednesday
- AT&T will release its report before the market opens.
- Ford and Chipotle will report earnings after the market closes.
Thursday
- Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.
Trump to speak at Bitcoin conference
Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.
In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.
Ether ETFs are on the way
New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.
Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.
That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.
Bitcoin
Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske
Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.
Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.
According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.
“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”
Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.
BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.
The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.
Source: Chris BurniskeX
Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).
Don’t miss a beat – Subscribe to receive email alerts directly to your inbox
To check Price action
Follow us on X, Facebook It is Telegram
Surf Hodl’s Daily Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be aware that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image generated: DALLE3
Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.
Technical analysis
Per NegotiationRage
The daily chart
As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.
The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.
The 4-hour chart
Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.
While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.
Source: TradingView SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive $600 welcome offer on Binance (Full details).
LIMITED OFFER 2024 on BYDFi Exchange: Welcome Reward Up to $2,888, use this link to register and open a 100 USDT-M position for free!
Disclaimer: The information found on CryptoPotato is that of the writers quoted. It does not represent the opinions of CryptoPotato about buying, selling, or holding any investments. It is advised that you conduct your own research before making any investment decisions. Use the information provided at your own risk. See Disclaimer for more information.
Cryptocurrency Charts by TradingView.
Buy a notice! 🚨 The main signals of Altcoin registration have just come out! [FULL LIST]
He has to recover this as soon as possible or will become ugly! [Crypto & Stocks]
Load quickly on these Altcoin! [Crypto Pump Loading!]
The only way to exchange crypt [Don’t Mess This Up]
The CEO of Mantra speaks live! [$6B Crypto Collapse]
ShardLab Launches ZK-Based Tool for Digital Identity and NFT Vouchers
Wallet recovery firms are abuzz as stranded cryptocurrency investors panic in the bitcoin boom
Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske
Three Altcoins Poised for Significant Growth in 2024: ETFS, OP, BLAST
Accumulate these altcoins now for maximum gains
Buy a notice! 🚨 The main signals of Altcoin registration have just come out! [FULL LIST]
He has to recover this as soon as possible or will become ugly! [Crypto & Stocks]
Load quickly on these Altcoin! [Crypto Pump Loading!]
The only way to exchange crypt [Don’t Mess This Up]
The CEO of Mantra speaks live! [$6B Crypto Collapse]
-
Nfts9 months agoShardLab Launches ZK-Based Tool for Digital Identity and NFT Vouchers
-
News11 months agoWallet recovery firms are abuzz as stranded cryptocurrency investors panic in the bitcoin boom
-
Bitcoin9 months agoBitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske
-
Altcoins9 months agoThree Altcoins Poised for Significant Growth in 2024: ETFS, OP, BLAST
-
Altcoins9 months agoAccumulate these altcoins now for maximum gains
-
Nfts9 months agoOG Crypto Artist Trevor Jones Unveils Groundbreaking Collection of Ordinals | NFT CULTURE | NFT News | Web3 Culture
-
Bitcoin9 months agoBillionaires are selling Nvidia stock and buying an index fund that could rise as much as 5,655%, according to some Wall Street analysts
-
Videos12 months agoLIVE FOMC 🚨 Could be CATASTROPHIC for Altcoins!
-
Videos11 months agoSTOCK MARKET FUD! ⚠️ [Why This Is GREAT For Bitcoin Traders!]
-
Videos11 months agoATTENTION all cryptocurrency traders! [This Altcoin Dump Changes Everything]
-
Videos11 months agoAttention: a historically significant BITCOIN signal has just appeared!
-
Altcoins10 months agoXRP, Shiba Inu, Cardano, Solana mega bounce imminent as Altcoin bottom remains strong ⋆ ZyCrypto