Key Points:
Bitcoin dropped to its lowest since May, losing 5% in 24 hours and marking its fourth consecutive decline.The Bitcoin price correction was fueled by Mt. Gox’s $2.7 billion Bitcoin movement and the German government’s $175 million Bitcoin sale.Investors await US jobs data for Federal Reserve policy insights, with expectations of continued correction.
Bitcoin price correction has occurred for four consecutive days after reaching record highs several months ago. The cryptocurrency’s price fell to its lowest since early May, with a 24-hour loss nearing 5%.
Bitcoin Price Correction Is Affecting Markets Amid Ongoing Selloff
According to Bloomberg, several factors contribute to the current Bitcoin price correction and the wider crypto market. Crypto speculators are grappling with diminished demand for US Bitcoin exchange-traded funds (ETFs), governmental sell-offs of seized tokens, and the unpredictable impact of US political developments.
One significant event triggering the selloff is linked to Mt. Gox, once the largest Bitcoin exchange before a major security breach in 2014 led to the loss of 850,000 Bitcoins. Recently, a Mt. Gox-linked wallet moved $2.7 billion worth of Bitcoin, as reported by Arkham Intelligence.
The movement follows Mt. Gox creditors updating their rehabilitation claims system with the amounts of Bitcoin and Bitcoin Cash to be repaid. In May, the exchange moved at least $2.9 billion in Bitcoin for the first time in five years.
German Government Bitcoin Sales Trigger Market Decline
Additionally, the German government has been selling off large amounts of Bitcoin. The German Federal Criminal Police Office recently transferred over $75 million worth of Bitcoin to exchanges, adding to a total of $175 million moved to various wallets. This continuous selling pressure is further impacting the market. In response, Tron founder Justin Sun announced his intention to purchase the remaining Bitcoin off-market, aiming to stabilize the situation.
Investors are also closely monitoring the upcoming US jobs data for indications on future Federal Reserve policies. Recent soft economic reports have fueled expectations that the Fed might ease monetary settings in the coming months. Some analysts predict that Bitcoin price correction could persist into the weekend.
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