Jul 5, 2024
The largest liquidation event since the FTX fiasco happened this week with close to a billion dollars in long positions being liquidated. Crypto market sentiment is at its lowest point since January 2023, looking at the Fear & Greed Index today we are in deep Fear territory.
So who or what is to blame? Well they say bad news comes in threes and this week is no exception, here’s what we know:
The German government has been selling Bitcoin like crazy, they sold over 7.5k Bitcoin worth close to half a billion dollars and they still have over 40k BTC left.
Mt. Gox, the first ever Bitcoin exchange that suffered major losses, is finally starting to pay out owed BTC to its customers from many years ago. Over 47k BTC were moved to a new wallet yesterday in preparation for July repayments.
The US government also has a huge 213k cache of BTC, some of which they moved to a new wallet this week.
The German Government decided to dump their BTC on the market on the 4th of July while we were out trying to enjoy the holiday, charming! An independent German Member of Parliament, Joahna Cotor has slammed the government's decision to “hastily” sell the bitcoin they hold. It appears that the German Government has since withdrawn some of their BTC from exchanges.
Taking a look at our chart this week we have taken a snapshot of the assets that fell the most on the 7 day - you can find the full list in our CoinGecko portfolio here.
With the dramatic drop in the market yesterday, Metal Pay saw higher user activation than usual - and that’s on a public holiday, so I imagine many of you, like us, were glued to our phones during the family BBQ and fireworks shows, potentially taking advantage of the steep discounts on show at the same time. For those that are holding on for the ride, hands and arms should remain inside the vehicle at all times.
