Bitcoin (BTC) has recently plummeted to a four-month low, shedding over 25% from its peak of $73,135 on March 13, triggering a significant downturn across the cryptocurrency market.
Currently, BTC is trading at $55,291, marking a 3.06% decline in the past 24 hours and adding to a weekly loss of 10.11%.
Since hitting its high of $1.4 trillion on March 13, Bitcoin’s market capitalization has contracted by $350 billion.
This downward trajectory has been exacerbated by substantial sell-offs and the ongoing reimbursement process by bankrupt exchange Mt. Gox, which is distributing nearly $9 billion in Bitcoin owed to creditors.
Moreover, the German government has initiated a series of Bitcoin sales, liquidating a significant portion of its holdings acquired in 2013 from the Movie2K website operator seizure. The recent transactions have totaled 6,625 BTC, yielding profits of $397 million over ten days.
While initially causing market concerns, the narrative around Germany’s Bitcoin sales may not accurately reflect market impacts, as observed by developer Samson Mow, suggesting a nuanced evaluation of the situation.
Bitcoin has seen notable price corrections since March, primarily due to significant sell-offs by large holders, or whales, along with substantial token unlocks increasing the altcoin supply.
Bitcoin and the whole cryptocurrency market has been through a significant decline since news broke about Iran bombing Israel.
Jay Jacobs, BlackRock’s US Head of Thematics and Active ETFs, believes there’s still a massive opportunity for Bitcoin growth, projecting the market could expand to around $5.4 trillion in the future.
Standard Chartered views Bitcoin’s recent dip below $60,000 as a typical market fluctuation, suggesting it could be a buying opportunity, according to an investor note shared with CryptoSlate on Oct. 3.