Why is BTC going down?
And when will bitcoin price recover?
After ripping higher in early 2024, BTC has been going down for the past three months.
Bitcoin price fell as low as $58,000, down some 20% from its all-time highs.
There are three reasons why BTC is going down:
#1 Mt Gox repayments
Mt Gox is a defunct crypto exchange that suffered a hack back in 2014.
Some of of the stolen bitcoin — 140,000 to be exact — has been recovered and will now be returned to Mt Gox victims.
The repayments are scheduled to start in July. Traders are likely frontrunning this by selling BTC creating a downard pressure on prices.
#2 German government is offloading its massive bitcoin reserves
Germany confiscated 46,000 BTC from illegal activities, or around $3 billion worth at today’s prices.
Now, the government decided to sell those.
It dumped 900 BTC (cca $50 million) yesterday, and plans to sell more today.
It’s safe to assume they will continue selling for weeks if not months. This is creating more downward pressure for bitcoin prices.
#3 Bitcoin miners selling BTC post-halving
The halving has cut the reward miners receive for mining bitcoin in half. Meaning, their businesses are no longer as profitable as they were.
Miners must now sell their BTC reserves to fund their operations.
Bitcoin miners sold over 30,000 BTC in June, the fastest pace in a year.
When will bitcoin start rising again?
This price action reminds me of last summer. Bitcoin doubled off the lows, then stalled out at $30,000 for six months.
This pattern is playing out again with bitcoin doubling, then consolidating:
BTC price could possibly trade in this range until September before the next leg higher.
Our research still indicates this crypto bull market has at least 18 months left in the tank, in which bitcoin can easily run to $150,000.
Many investors are frustrated by this “boring” market.
But this is what a healthy market looks like. Consolidation after a huge move up is a sign much higher prices are coming.
Bottom line: This is a great time to buy bitcoin.
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I publish fresh research on stocks and crypto every M/W/F.
