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.
Two major developments are converging in July that could shape the future of Bitcoin in the United States—both tied to President Trump’s administration and its expanding crypto agenda.
Digital asset investment products recorded $1.04 billion in inflows last week, pushing total assets under management (AuM) to a record high of $188 billion, according to the latest report from CoinShares.
Strategy, the Bitcoin-centric firm formerly known as MicroStrategy, has temporarily paused its regular Bitcoin purchases.
Spanish banking giant BBVA has expanded its digital services by introducing in-app Bitcoin and Ethereum trading and custody for retail clients.