Bitcoin's Price Drops: Mt. Gox Repayments and Government Sales

Bitcoin's price has taken a steep dive, falling 8% over just two days. What's behind this drop? Some major players are selling their bitcoins. The infamous Mt. Gox exchange, which went bankrupt back in 2014 after a huge hack, has started paying back its creditors. It's estimated that Mt. Gox still holds around 140,000 bitcoins.

Meanwhile, governments are also cashing out. Both Germany and the US have been moving bitcoins from their wallets, suggesting they're planning to sell. Germany recently sold about $175 million worth, while together, both countries have sent over $738 million to exchanges in the last two weeks. All this selling has pushed bitcoin's price below key support levels. It's now trading below its 200-day moving average, which is around $59,500. This could mean more drops are on the way. Some analysts say the next support level is around $51,500.

Actions