Bitcoin (BTC) has been making headlines in the crypto community due to its recent price decline, sparking various speculations among investors. One of the main reasons behind this price crash is the reported distribution of $100 million worth of Bitcoin by the defunct crypto exchange Mt. Gox. The firm transferred a substantial amount of BTC to three different wallet addresses, each receiving $30.18 million worth of Bitcoin. This massive sell-off has led to selling pressure in the market, with concerns rising about the potential impact of Mt. Gox distributing billions of dollars worth of BTC to creditors in the near future.
Another factor contributing to the downward trend in Bitcoin’s price is Fed Chair Jerome Powell’s anti-crypto stance. During a recent rate cut announcement, Powell made a statement declaring that the Federal Reserve is not allowed to own Bitcoin and has no intention of changing the law to accommodate it. This stance has caused uncertainty among investors and added to the overall bearish sentiment in the crypto market.
In addition to these speculations, technical analysis also suggests that Bitcoin has broken below a crucial support level that it had maintained since November 2024. CoinPedia’s analysis indicates that BTC has experienced a 6.5% price decline and found support at $92,500, with the possibility of dropping further to $85,500 if the support level does not hold. However, if the support level remains intact, Bitcoin could see a resurgence in its price momentum.
Over the past three days, Bitcoin has seen a significant decline of over 14%, dropping from $106,600 to $92,600. This price crash has raised concerns among investors, especially with the breakdown of the key support level. As the crypto market continues to navigate through these turbulent times, it will be crucial to monitor how Bitcoin responds to these challenges and whether it can regain its bullish momentum in the near future.