Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn

Crypto Winter Looms: Bitcoin, Ethereum Lead Market Decline

CoineditionCoinedition2024/07/05 07:07
By:Anisha Pandey
  • 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.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

You may also like

Bitcoin Price Analysis: Outlook for Continued Decline

Cryptodnes2024/07/08 07:28

Bitget Daily Futures Market Update

Bitget2024/07/08 07:04

TonUP (UP): Grasp the value depression on the TON public chain

远山洞见2024/07/08 05:47

'Asia's MicroStrategy' Metaplanet buys another ¥400 million worth of Bitcoin

Cryptobriefing2024/07/08 04:07

‌Spot copy trading

More
AIOnline
AIOnline
insight1000/1000
10003.5%
ROI
Total profit $51017.85
WhaleGo_YouTube
WhaleGo_YouTube
insight500/500
1334.55%
ROI
Total profit $3875.03

Bot copy trading

More
Morgee
Morgee
insight78/150
$17201.73
Total profit
Total subscriber profits $-223.96
BGUSER-FFF8CNJ4
BGUSER-FFF8CNJ4
insight8/150
$91.44
Total profit
Total subscriber profits $-153.18