Second-largest Bitcoin (BTC) Price Collapse in History Just Happened, But…

Bitcoin’s bearish momentum isn’t slowing down as its price has continued to decline following Thursday’s breakdown below the $60,000 support level. 

According to On-chain analytics firm, WhaleWire, this is the second-largest liquidation event in Bitcoin’s history, surpassed only by the dip that followed FTX exchange bankruptcy filing in November 2022.

Factors Behind the Price Drop

Several key factors have contributed to this massive liquidation event:

  1. German BTC Sales: The German government has initiated the sale of $3.5 billion worth of seized Bitcoin.  
  2. Mt. Gox Repayments: Mt. Gox has started the process of repaying $8.5 billion to its creditors. There is FUD that the creditors will soon begin dumping their BTC.
  3. Market Sentiment: The combination of these large-scale sell events has triggered a wave of panic selling.

Market Corrections Happen During Bull Rallies

Despite the price drop, it’s important to understand that such corrections are very common during bull markets. Bitcoin and the overall crypto market have previously recovered from major price dumps.

The general market has hope for the upcoming launch of spot Ethereum ETF, as it is expected to bring more capital into ETH and other altcoins. This could change the whole bearish sentiment quickly. 

Popular Bloomberg analyst James Seyffart thinks the ETH ETF could start trading around July 15. Many other analysts suggest we could see the ETFs this month or in August, which could make the market recover, just like it happened with Bitcoin ETF approvals.

Read more: Why Is the Crypto Market Down Today?

Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Vignesh Karunanidhi
Vignesh Karunanidhi

Seasoned crypto writer with deep passion for blockchain and cryptocurrency

CaptainAltcoin
Logo