Over the past 24 hours, Bitcoin has seen a massive price correction, dropping by 4% to reach $65,894 as of this writing. The current price means BTC is trading at the same level it was last Tuesday, according to CoinGecko’s data.
The sudden fall from $70,000 has caused thousands of Bitcoin traders to be liquidated. Earlier today, crypto analytics platform CoinGlass reported that traders who opened long positions on Bitcoin had collectively lost $76 million following liquidation since yesterday.
Factors Causing Bitcoin’s Price to Drop
But what’s causing Bitcoin to trend downward? Crypto analysts attribute this trend to numerous factors. First, while new data shows that most Mt. Gox creditors have decided to HODL their Bitcoin after getting paid, some continue to cash out their BTC repayments after spending over a decade without accessing their investments.
Mt.Gox, a fallen crypto exchange that closed shop in 2013 following a massive Bitcoin hack, started repaying its creditors earlier this month.
Another possible factor fueling Bitcoin’s price correction is the massive BTC transfers made by the United States government on Monday evening. DegenNews reported on X that the Department of Justice had moved over 29,000 Bitcoin to various addresses, prompting many to believe that the authority was planning to dump the coins. According to DegenNews, the transferred Bitcoin was seized from now-closed online black market Silk Road.
Crypto Expert Anticipates a Rally
Regardless of the driver causing the correction, crypto analyst at BRN, Valentin Fournier, says the dip is “healthy.” He argues that the latest price fall has allowed Bitcoin to get out of the overbought levels, opening room for further uptrend.
Moreover, Fournier says the increased institutional adoption, possible rate cuts in September, and the growing interest of several nations in holding Bitcoin as a reserve asset are some of the factors that could propel BTC to new prices in the coming months.
Ethereum and Solana Price Performance
Bitcoin isn’t the only top ten crypto asset witnessing a downturn. Ethereum and Solana have also taken a hit. At the time of publishing this article, ETH was trading at $3,290, down 1% in the past 24 hours. Its downtrend is attributed to outflows from Grayscale Ethereum spot ETF. Solana, on the other hand, is priced at $180, down 3.2%.
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