Bitcoin just ended its longest bull run
Key facts:
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“It was time for a correction,” says Capriole CEO.
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Several factors have driven the fall of bitcoin
Today bitcoin (BTC) put an end to its longest bullish streak of all timeFor the first time, after 427 days, the digital currency’s drop exceeded 25% on July 5, 2024.
As CriptoNoticias reported, BTC registered its lowest price in four months this Friday, after it was learned that the defunct Japanese exchange, Mt.Gox, began to settle its debts with creditors.
The BTC price thus fell to $53,485, levels not seen since February 26, 2024, as can be seen in the following graph.
In that context, Charles Edwards, CEO of the investment firm, Capriole, warned that this drop in the price of BTC put an end to the “longest streak of all time” of the digital asset. He detailed:
“427 days without a 25% drop. It beat the 2012 record by 63 days. We’ve had a pretty incredible run and it’s time for a correction.”
Charles Edwards, CEO of Capriole.
This drop in the price of BTC comes after the trustee sent 47,228 BTC to a new address as part of the payment plan to compensate creditors.
BTC sale by the United States and Germany
However, this was not the only factor. which generated downward pressure on the cryptocurrency market. The moves of the US and German governments, plus the capitulation of miners, are affecting the BTC price.
The US and German governments have transferred over 12,000 BTC to various cryptocurrency exchanges in the past two weeks.
According to data from analytics firm Arkham Intelligence, these transfers total around USD 737 million in BTC to the Coinbase, Bitstamp and Kraken exchanges.
As CriptoNoticias has already reported, the reasons why these governments carried out these operations are unknown. However, it is clear that these actions usually precede liquidations in the market.
Given the drop in the price of BTC, it is likely that these assets have been sold.
Miners’ capitulation affects bitcoin’s price
Another factor that is causing the fall of BTC is the capitulation of weak miners, who were still unable to cope with the reduction in rewards brought about by the halving.
Currently, all miners are in the red, according to Martin Hiesboeck, head of research at cryptocurrency trading platform Uphold. “This has a huge effect on the price of bitcoin,” he said.
Willy Woo, a professional trader and market analyst, explained that the current capitulation of miners “is one for the history books because it is taking so long” and added that this is happening because they operate with old hardware and have high costs to do their tasks.
He also added:
“Others are forced to upgrade to more efficient hardware. Why? Because their revenue is cut in half while maintaining the same costs. Both cases force miners to sell their BTC to pay for losses or hardware upgrades.”
Willy Woo, professional trader.
It will be a matter of time to see how weak miners adjust to these new fees and whether this has any impact on a potential increase in the price of BTC.
