3 Factors Responsible For A Sudden 6.07% Drop In Bitcoin Price

• BTC price is below $54 K, a level it hasn’t seen for several months.
• Mt. Gox redemption might have triggered this fall, but two other factors could also be responsible. 
• Some crypto experts recommend holding Bitcoins because it might surge soon!

The Bitcoin price nosedived yesterday, shocking millions. Many crypto enthusiasts could not believe it because they thought the BTC price would only go up. 

This 6.07% BTC price fall shook up the entire crypto industry. Many altcoins, including ETH, BNB, SOL, XRP, TON, etc., went down with BTC. What went wrong? Which factors triggered this steep fall in crypto prices? 

Experts believe 3 major factors took the Bitcoin price below $54K. Of course, Mt. Gox moving $2.7 Billion in BTC is one of those 3 major reasons.  

3 Factors that Could have Triggered a Steep Fall in Bitcoin Price

The entire crypto market is experiencing the heat of the falling Bitcoin price. This crypto asset may not seem as volatile as some altcoins are, but it is still a cryptocurrency. 

The last time BTC traded below $54,000 was in February 2024. It grew and touched the all-time high (ATH) mark of $73,798 in March 2024. 

However, some analysts had thought BTC would only fly higher after its ATH. It fell multiple times, but this time, it fell to a level very few thought possible. Let’s find out what triggered this drop in the Bitcoin price.

Mt. Gox Moving BTC Coins to Another Wallet

Defunct Mt. Gox exchange moved almost 47,229 Bitcoins to another crypto wallet address this Thursday. It had already announced in June that it will begin repaying hack victims in July. 

Jacob King’s (@JacobKinge) tweet shows how the failed Bitcoin exchange moved BTC worth $2.7 Billion on July 4th.

BTC had already faced a downfall due to the Mt. Gox announcement. Moving over 47K BTC coins to another address, the exchange could have signaled the beginning of repayments. 

Bitcoin price dropped below the $53,600 price level, and users liquidated bullish bets worth more than $580 Million. BTC is still trading around the $53K mark. It might be an excellent buy-on-dip opportunity for users who have waited months to invest in BTC. 

German Government Selling BTC Worth $434.9 Million 

A reputed X user with over 88K followers reported that a Bitcoin address, probably linked to the German Government, moved 1,300 Bitcoins to popular centralized exchanges, including Bitstamp, Coinbase, and Kraken. 

Many reliable sources have reported that the German government has already sold 7,583 BTC cryptos. It might still hold over 40K Bitcoins, and selling them will further affect the price. 

Miner Capitulation

An X user, Cryptoziq (@crypt0ziq), shared that BTC miner capitulation levels look identical to those of late 2022. The daily miner revenue used to be $79 Million, but it had dropped to $29 Million.

The hashrate also toppled by 7.7% since April 19th, 2024, when BTC halving occurred. There are signs of miner capitulation and it has been linked to market bottom. BTC is bearish, and some crypto experts are linking it to miner capitulation. 

Hold or Sell BTC?

When writing, the BTC price was trading at levels it hadn’t seen in the last five months. Should crypto enthusiasts hold their Bitcoins or sell? Crypto investor and advisor Quinten | 048.eth (@QuintenFrancois) tweets “Do Not Sell Your Coins” with a noteworthy reason.

Another crypto expert, Illusion X (@illusionXcrypto), shared positive thoughts regarding BTC price.

Such optimistic statements must be encouraging for users, who might be confused due to current market conditions. 

Pratik Chadhokar