BTC price dropped below $55k. What’s causing crypto downturn?

What’s going on in the crypto world right now? Let’s find out!

The crypto market is experiencing extreme volatility, with Bitcoin plunging below $54K and other major cryptocurrencies also suffering. This turbulence has pushed many traders into ‘fear mode,’ as indicated by the Fear and Greed Index, which currently sits at 29 as of July 5th.

Why is this happening? Here are our insights:

• BTC Inflow to Exchanges: Recently, the German government transferred 1300 BTC (valued at $75.53 million) to centralized exchanges (CEXs) like Kraken and Coinbase, marking a significant movement of Bitcoin to these platforms.
• Market Corrections: According to experts, a 28% correction from Bitcoin’s all-time high of approximately $78K is a typical response following a strong uptrend.
• Mt. Gox Payouts: The defunct cryptocurrency exchange Mt. Gox has moved over 47,000 BTC in preparation for repaying $9 billion worth of Bitcoin to creditors who lost funds in a hack over ten years ago.
• Bitcoin Hashrate Decline: The Bitcoin network’s computing power has dropped to levels last seen in December 2022, with a drawdown of -7.6%, potentially signaling a price bottom.
• Miner Selling Pressure: Since June, miners have sold over 30,000 BTC (around $2 billion) due to increased post-halving operational costs. Miner BTC holdings are now at their lowest level in 14 years, with total reserves decreasing by 50,000 BTC this year.

Strategies for Navigating the Current Market:

• Selling Crypto for Fiat: If you’re aiming to minimize losses or temporarily step back from the market, converting your crypto to fiat could be a wise move.
• Swapping to Stablecoins: Converting volatile assets like Bitcoin and meme coins into stablecoins (such as USDT or USDC) can protect your investments from further price drops.
• Seizing Buying Opportunities: Market downturns can present excellent buying opportunities for long-term investors. Acquiring cryptocurrencies at lower prices now may lead to substantial gains when the market recovers.

Remember: NOT financial advice! All the decisions you make should be based on your own research.

To reduce risks and maximize your savings, use ChangeNOW to securely, quickly, and efficiently buy, sell, and exchange crypto with no hidden fees. Discover how to exchange BTC with the lowest fees in our latest article:

Exchange BTC with the lowest fees!