Mt. Gox Saga
Bitcoin’s recent crash coincides with news from Mt. Gox, the defunct exchange where a massive Bitcoin theft occurred in 2014. The trustees have announced that they will begin repaying victims in July 2024 using stolen assets.
This news has shaken market confidence as investors fear that the influx of these assets could lead to oversupply and selling pressure.
Liquidation of Long Positions
Adding to the downward pressure, a surge in the liquidation of long BTC positions has occurred. This means that traders who were betting on Bitcoin’s rise have been forced to sell, further driving down the price.
Miner Capitulation
Miners who are struggling to make a profit are also selling their Bitcoin to cover costs. This increases the supply of Bitcoin on the market and puts downward pressure on the price.
What’s Next?
Experts believe that Bitcoin’s recovery will depend on the end of miner capitulation and a resurgence in mining activity. However, the timing of this recovery is uncertain.
