The broader crypto market continues to suffer severely as Bitcoin (BTC) takes another hit after declining to less than $57k. After hitting an all-time high of over $73k in March as large institutional funds flowed into ETFs, Bitcoin continues to decline. Moreover, the ETFs are no longer receiving much inflows as Grayscale GBTC leads the race of negative net flows.
Bitcoin (BTC) Massive Decline to $57k
July 4th was a day to remember after the apex cryptocurrency, Bitcoin (BTC), recorded a massive decline to less than $57k. According to data from CoinGecko, Bitcoin was trading at less than $56,850 at one point in the last 24 hours. Furthermore, there was more than a 5% decline over the previous seven days, a 10% decline in 14 days, and a 17% decline in the past 30 days.
In fact, more analysis of its recent price performance shows the current price is 20.75% lower than the all-time high price. Apparently, the highest price paid for Bitcoin (BTC) is $73,737.94, which was recorded on Mar 14, 2024, and has struggled to get to this point again. Nevertheless, Bitcoin (BTC) seems to be outperforming the broader crypto market despite the decline. Data shows it is outperforming the global cryptocurrency market, which is down -6.50%. Furthermore, the $41,842,433,950 trade volume in the last 24 hours represents a 40.10% increase. But this is primarily due to massive liquidations from traders.
Reason for the Decline: German government Selloffs
There’s a reason behind the recent drop in Bitcoin price. Apparently, there were massive liquidations of seized Bitcoins from the United States government and the German government. For more than one month now, they have been transferring enormous amounts of Bitcoins to several centralized crypto exchanges, and many analysts say this is a sell-off.
The German government seems to be the most involved in the massive sell-offs. Moreover, three major exchanges, Coinbase, Bitstamp, and Kraken, were the major selling points for these Bitcoins. According to reports from Lookonchain, the German Government transferred 832.7 $BTC($52M) on July 2nd. Furthermore, 282.7 $BTC($17.65M) of this amount went to Bitstamp, Kraken, and Coinbase. They also reported that the German government was currently holding around 43,859 $BTC($2.74B).
Bitcoin (BTC) ETFs Record Another Outflow with Grayscale
Spot Bitcoin ETFs seem not to be helping the market after recording another round of outflows, with Grayscale leading the race.
Over the past few weeks, Grayscale continues to be consistent with having negative net flow. The issue can be traced to its massive fees, coupled with the current decrease in Bitcoin price and the bearish sentiment of the broader crypto market.
Conclusion
Traders and investors were shocked by the new rounds of massive price decline from Bitcoin after dropping down to less than $57k on 4th July. Apparently, this extends the weekly decline to over 5% while it has remained 17% negative for the past 30 days. According to data from Lookonchain, massive Bitcoin sales on centralized exchanges from the US and German governments contribute to the current issue. Moreover, spot Bitcoin ETFs aren’t helping matters after another round of outflows.
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