Bitcoin Drops to Lowest Level Since Feb Despite Record-High Peaks

bitcoin

In the past 24 hours, approximately $222 million worth of long Bitcoin positions were liquidated, coinciding with BTC reaching its lowest price since February. 

Bitcoin, the world’s largest crypto asset by market capitalization, has dropped to its lowest level since February despite hitting a record high earlier this year.   

The leading crypto dropped by up to  8.1%, hitting its lowest level since February. At the time of publication, it was trading around $54,300. The recent development has spiked sell pressure on traders and investors. 

Possible Reasons for Price Decline 

Some factors impact this significant decline, citing Mt. Gox’s $8 billion repayment plan scheduled this month and the German government selling off BTC.   

According to PeckShieldAlert, the German government has continued selling its seized Bitcoin, with the latest sale amounting to up to $175 million in BTC on July 4.   

On June 25, the German government sold 900 bitcoin (BTC), valued at $54.75 million, and transferred 400 BTC, worth around $24.33 million, to popular crypto exchanges Coinbase and Kraken.     

Crypto Liquidity 

According to CoinGlass, crypto liquidations have soared to $664.5 million over the past 24 hours, reaching the highest level in two months.   

Over the past 24 hours, crypto liquidations totaled $664.5 million, including $584 million in long positions and nearly $82 million in short positions, with long BTC positions accounting for $222 million.  

Positive sentiment toward crypto has reached its lowest level since January 2023. On July 5, the Crypto Fear and Greed Index scored 29 out of 100, indicating that the market is experiencing “Fear.”  

According to data from CryptoQuant, daily miner revenue has plummeted by 75% to $26.5 million since the April halving. Transaction fees earned by miners have decreased to 3.7% of total income, down from 75% earlier that month.  

The operators of the energy-intensive computers that power the Bitcoin blockchain are still feeling the financial impact of April’s halving, which reduced the number of new tokens they receive for their efforts. These Bitcoin miners have started selling some of their token inventory.   

Meanwhile, at the time of writing, the digital asset has slightly recovered to $55,039, with an all-time high of $58,674 recorded on March 14, 2024.