Bitcoin Approaches Local Bottom Amid Recent Massive BTC Sell-Offs – Bitfinex

Bitcoin continues to struggle to regain upward momentum after falling from the $62,800 level about a week ago, sparking speculation of an imminent further drop. BitfinexA major Hong Kong-based cryptocurrency exchange predicted in a recent analysis report that Bitcoin may be nearing a potential bottom, suggesting that the recent decline may be nearing an end.

Is Bitcoin’s decline coming to an end?

Cryptocurrency exchange Bitfinex released its latest Bitcoin forecast on Monday. Alpha-112 ReportThis prediction coincides with the recent massive sell-off of BTC, which may have had a negative impact on the crypto asset and led to its notable drop over the past few days.

According to the report, some of the expected cruelty included: Bitcoin The stock then trended down below the 120-day range, hitting a low of $53,219 for the first time since February 26th. The move is in line with Bitfinex’s prediction of a market correction and increased volatility, but the platform highlighted that a potential local bottom may be approaching given the developments from July 6-7.

Additionally, Bitfinex attributes the drop to recent BTC sales by Germany’s law enforcement agency, the Federal Ministry of Justice (BKA), among others. Over the past few weeks, the German government has been in a constant state of disarmament. Conducted a large-scale saleI have transferred thousands of BTC from my custody to an exchange.

According to Bitfinex, this action ultimately caused fear and anxiety among investors of all stripes, leading to a massive sell-off of BTC, which caused BTC to fall from Tuesday’s high to a low of $53,219 last Friday, a 16% drop from peak to trough.

Bitfinex also attributed some of the decline to Mount Gox Over the weekend, and especially on July 5, Mt. Gox reportedly moved over 47,000 BTC to another wallet, which could have triggered further selling among investors and led to a drop in prices.

The impact of the sell-off on BTC is minimal

Bitfinex remains in the red despite massive sell-offs by the German government, Mt. Gox and private investors. Bitcoin It’s minimal and probably a lot less than it looks.

Bitfinex highlighted that only $9 billion in Bitcoin has been acquired and sold so far by governments, including the United States and Germany, and that with Bitcoin’s realized market capitalization valued at $224 billion beyond 2023, this figure represents just 4% of the value added to the market.

As a result, Bitfinex believes that while the sales of seized BTC are substantial in individual transactions, the overall impact on markets and BTC stability is less significant than initially seemed.

BTC is trading at $57,691 on 1D chart | Source: BTCUSDT Trading View

Featured image from iStock, chart from Tradingview.com

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