Bitcoin’s price has been dropping for four days straight, hitting its lowest point since early May.
Over the last 24 hours, traders suffered huge losses, we’re talking about hundreds of dollars of liquidations.
Selloff, FUD, macro
Bloomberg reports that several issues are showed up in the same time, causing Bitcoin’s price drop like a stone.
This also torture the whole crypto market. Crypto traders are facing less interest in US Bitcoin ETFs, government sales of seized tokens, and uncertain US political situations, just naming the three biggest.
One major factor is related to Mt. Gox, which was once the largest Bitcoin exchange before a massive hack in 2014 resulted in the loss of 850,000 Bitcoins.
Right now, a Mt. Gox-related wallet moved $2.7 billion worth of Bitcoin, and many thinks the repayment is near, and owners will sell en masse after receiving the compensation.
In May, the exchange moved at least $2.9 billion in Bitcoin for the first time in five years.
They say German government didn’t make a correct decision since decades
Another reason for the market decline is the German government selling large amounts of seized Bitcoin.
The amount isn’t that large in reality, but the FUD is gaining steam.
The German Federal Criminal Police Office transferred over $75 million worth of Bitcoin to exchanges, contributing to a total of $175 million moved to various wallets.
This ongoing selloff is putting more pressure on the market, or at least, to the less confident traders.
In response, Tron founder Justin Sun announced plans to buy the remaining Bitcoin off-market to help stabilize the situation.
US macro data
Investors are also watching the upcoming US jobs data for clues about future Federal Reserve policies, the rates.
Weak economic reports have led to expectations that the Fed might relax monetary policies in the coming months, which is often interpreted as money printing.
And printing is good for Bitcoin price. But now, some analysts think the Bitcoin price correction could continue into the weekend.
Bitcoin’s volatility is expected as it transitions from being seen as fringe magic internet money to a mainstream safe haven and store of value.
The market needs to decide the value of owning an asset with unique features like being uncensorable, permissionless, and resistant to debasement.
Bitcoin is the only asset in the world with these properties, so in the short term, its price will likely keep fluctuating.
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