After a couple of green days in late June, the crypto market has been experiencing unexpected price declines in the early days of July. As of the time of writing this post, the Bitcoin price has fallen by over 17% compared to its value a month ago, trading at around $57K.
But not only Bitcoin is in the red zone. Ethereum and other altcoins have followed in the leader’s footsteps, and everyone is wondering why the market is down.
Here are some reasons for the current market struggles:
Mt. Gox Repayments
Mt. Gox was one of the first-ever crypto exchanges, with a history dating back to 2010. During that time, the platform was one of the largest in the world until it got hacked in 2011. The hackers stole over 600,000 BTC, causing the exchange to fold up.
13 years later, the defunct exchange announced that it would be paying back its clients who had their coins stolen by the hackers in July 2024. According to reports, the repayments have already started in Bitcoin and Bitcoin Cash.
The news of the repayments has resulted in a selling pressure among Bitcoin traders and investors. This is because the expected influx is massive. Currently trading at around $57K per coin, 600,000 BTC will be around $34.2 billion.
The addition of many new coins into the market could potentially drive prices down. So, many people are selling their holdings to avoid losses.
Strong BTC Movement From Germany
The German government is another contributor to the recent price falls in the crypto market. According to reports, there was a recent transfer of 3,000 units of BTC from a crypto wallet linked to the country to different exchanges and a crypto wallet. As of July 2024, the coins are worth over $172 million, and the current price situation is the market’s reaction to the news. The external transfers from such a crypto whale added to the high selling pressure we are experiencing.
Overall Market Sentiment
When Bitcoin is down, the broader market is affected. The current market sentiment is bearish because many traders are taking their profits to avoid future losses. As a result, investors’ interest in Bitcoin and other cryptocurrencies is down.
This is no surprise because when supply is higher than demand, coins lose value. But once the bulls are back in control, we’ll see the market value go back up again.
Final Thoughts
The crypto market is down, but it’s really not a new occurrence. The ups and downs are what make up the market we all love. The best part is that you don’t need to stop trading or even locking in some coins during bearish moments.
Look at it this way, the price of Bitcoin and other coins are down. That’s a good opportunity to buy them at lower prices and start trading on Quidax before the next bullish trend. But don’t take our word for it. Do your own research to make the best choice for yourself.
