Bitcoin Prices Drop 10% Amid Selling Pressure

Bitcoin Prices Drop 10% Amid Selling Pressure

Isabella Rossi
2 min read

Bitcoin Prices Decline Over 10%, Heads Towards $50,000 Amid Mounting Selling Pressure

Bitcoin prices have experienced a steep drop of over 10% in the past week, dipping below crucial technical indicators, heightening the possibility of plummeting to $50,000. This decline has erased the gains achieved since February and has resulted in substantial selling pressure, with prominent entities such as the German government, Mt. Gox, and the US government holding substantial amounts of BTC. Analysts are foreseeing further downturns if this prevailing selling trend persists.

Key Takeaways

  • Bitcoin's value has plummeted by over 10% and is struggling to reclaim critical technical levels.
  • The significant selling from entities like the German government, Mt. Gox, and the US government has fuelled bearish sentiment in the market.
  • Analysts anticipate Bitcoin's potential decline to $50,000 due to the ongoing substantial selling activities.
  • The recent distribution of BTC by Mt. Gox following a 2014 hack triggered an 8% decrease in Bitcoin prices.
  • Over $550 million in crypto longs were liquidated in the last 24 hours, contributing to market instability and volatility.


The recent nosedive in Bitcoin's value, propelled by substantial selling from the German and US governments and Mt. Gox, is posing a threat to push the cryptocurrency below the $50,000 mark. The drop, exacerbated by Mt. Gox's dispersion of hacked BTC, has led to the liquidation of over $550 million in crypto longs. This immediate impact has heightened market volatility and investor uncertainty, with potential long-term ramifications reshaping investor confidence and altering institutional crypto portfolios. If the selling pressure persists, the market is prone to continued instability and potential regulatory scrutiny.

Did You Know?

  • Mt. Gox:
    • Mt. Gox was a leading Bitcoin exchange, established in 2010 and headquartered in Tokyo, Japan. It once facilitated over 70% of worldwide Bitcoin transactions at its peak.
    • In 2014, Mt. Gox declared bankruptcy after losing approximately 850,000 Bitcoins, valued at around $450 million at the time, due to a blend of theft and mismanagement.
    • Current wallet activities entail the ongoing dispersion of the remaining recovered Bitcoins post-hack, contributing to notable market volatility as traders envision further selling.
  • 200-Day Moving Average:
    • The 200-day moving average serves as a technical analysis tool utilized by traders to gauge a security's long-term trend, such as Bitcoin.
    • This average is computed by averaging the security's closing prices over the previous 200 days.
    • When a security's price surpasses its 200-day moving average, it typically signals a bullish trend, while falling below indicates a bearish trend.
    • In the context of Bitcoin, a dip below the 200-day moving average hints at a potential shift from a bullish to a bearish market, exerting influence on investor sentiment and trading decisions.
  • Crypto Longs Liquidation:
    • Crypto longs refer to traders purchasing a cryptocurrency with the expectation of its price surge, enabling profitable selling.
    • Liquidation occurs once an exchange automatically closes a trader's position due to insufficient margin or maintenance margin requirements, commonly triggered by a rapid decline in the asset's price.
    • The mention of over $550 million in crypto longs being liquidated implies a considerable number of traders who had bet on Bitcoin's price rise were compelled to exit their positions, intensifying price declines and creating heightened market volatility.

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