Bitcoin Price Prediction as BTC Bounces 8% From Recent Bottom – Is the Sell-Off Over?
The cryptocurrency market has experienced significant turbulence over the past week, marked by sharp declines and subsequent recoveries.
Notably, Bitcoin (BTC) plunged 8%, briefly dipping below the $54,000 mark before managing a slight rebound.
The market’s instability wasn’t isolated to Bitcoin; other major cryptocurrencies such as Ethereum (ETH), Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) also faced substantial drops, ranging from 8% to nearly 18%.
The dramatic sell-off across the crypto market resulted in massive liquidations, with data from Coinalyze indicating over $580 million in liquidated positions.
Bitcoin and Ethereum accounted for the bulk of these losses, with combined liquidations surpassing $380 million. The largest single liquidation was an Ethereum trade valued at $18.4 million on Binance. The plunge in prices and subsequent liquidations also led to a 12% drop in open interest, suggesting a significant exodus of capital from the market.
This market upheaval was partly triggered by Bitcoin’s movement from a Mt. Gox-linked wallet , which alarmed traders and precipitated the downturn.
Mt. Gox, the defunct exchange that suffered a massive hack in 2014, is preparing to distribute assets to creditors, potentially adding further selling pressure. This anticipated distribution has overshadowed the market, with trading firm QCP Capital predicting a subdued third quarter for Bitcoin.
Similarly, Germany transferred over 1,300 Bitcoin from a German government-labeled wallet valued at approximately $75.69 million . The potential release of substantial amounts of Bitcoin into the market raised fears of oversupply, contributing to the sharp price declines.
Another critical factor was the widespread
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