Bitcoin (BTC) managed to ruin its good weekend in a matter of hours. After a few strong days, the Bitcoin price took another nosedive last night. The downward trend of last week seems to have been revived, which has crushed the renewed hopes.
It is not only the Bitcoin price that is a cause for concern. In the coming months, hundreds of thousands of Bitcoins could be dumped on the market, which could push the price down further.
BTC price crashes to just above $54,000
After remaining largely unscathed for several days, the Bitcoin price took a major hit last night.
Yesterday you could read how Bitcoin seemed to turn the tide last weekend with a recovery to above $58,000. However, yesterday it went downhill again, which turned out to be an omen for growing negative momentum.
Yesterday, the price slowly dropped throughout the day to $57,000. From 23:00, Bitcoin took a hard dive and within a few hours the price was brought back to a low of just above $54,000.
Bitcoin has since shot up again, past $55,000. However, the week ended yesterday on a somewhat worrying note, below a key support level just above $56,000.
Summer Bitcoin Sale
Bitcoin’s price action suggests that more pain is in store for us. The BTC price has been under pressure for weeks, mainly caused by the upcoming repayments of the bankrupt Bitcoin exchange Mt. Gox and the BTC sales by the German government.
However, in the coming months, these two factors could push the Bitcoin price down even further.
Last Friday, the 2014 collapsed Mt. Gox announced the start of its dreaded repayment process. Over $8 billion worth of Bitcoin will be distributed to creditors in the coming months. After more than a decade of waiting, this is a big relief for former customers of the failed exchange, but the market fears the potential impact on Bitcoin prices.
“While it is not yet clear what portion of the total distribution will be sold into the market, there will be significant selling pressure on Bitcoin,” K33 Research wrote of the Mt. Gox creditors in its latest report.
The German government has also been busy selling its seized Bitcoins earlier this year for weeks. Our eastern neighbors had confiscated a total of 50,000 BTC, but have already dumped hundreds of millions of dollars on the market. According to blockchain analytics platform Arkham Intelligence, the German government still owns almost 40,000 BTC with a value of more than $2.2 billion, which may still end up on the market in the coming months.
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Source: https://newsbit.nl/bitcoin-koers-duikt-onder-55-000-grote-verkoop-verwacht-komende-maanden/
