Bitcoin experiences a sharp decline, dropping below $58,000 to hit a low of $57,166 due to significant sell-off pressure. Large holders and governmental wallets contribute to the downturn, with analysts predicting further volatility in the market.
Bitcoin Falls Below $58,000 Amid Significant Sell-Off
On Thursday, July 4, 2024, Bitcoin experienced a notable downturn, dropping below $58,000 and hitting a low of $57,166 due to substantial sell-off pressure. The cryptocurrency’s price saw a near 5% decline within 24 hours, attributed to significant sales by large holders, often referred to as ‘whales,’ and governmental wallets.
Data from CoinMarketCap indicated that Bitcoin’s value touched $57,166 across major exchanges, though it later rebounded to just above $57,800. Despite this slight recovery, over the past week, Bitcoin’s price has decreased by approximately 5.4%.
Reports identified a notable transfer of 3,500 BTC to Binance by an anonymous whale, along with another transaction involving the German government moving 3,000 BTC to exchanges. Additionally, the U.S. government transferred 237 BTC, contributing to the downward pressure.
In a related development, the defunct exchange Mt. Gox began repayments to its creditors. Utilizing data from Arkham Intel, it was reported that these repayments included small Bitcoin transfers to designated exchanges like Bitbank. Over the coming months, this process is expected to disburse around $8.2 billion in Bitcoin and Bitcoin Cash, potentially influencing market dynamics.
Analysts, including Peter Chung from Presto Research, predict further sell-offs, particularly for Bitcoin Cash, which could face more significant pressure compared to Bitcoin. This ongoing activity coincides with Bitcoin’s recent decline from a high of $72,000 to its current levels, suggesting continued market volatility.
