Leading cryptocurrency Bitcoin rose up to $70,000 over the weekend with the support it received from US presidential candidate Donald Trump's positive statements. However, BTC, which could not maintain these levels, fell to $ 66,000 after the activity in the US government and Mt.Gox wallets.
At this point, while Bitcoin erased last week's gains, most altcoins accompanied BTC. Solana (SOL) reversed Monday's gains and led altcoin losses, falling as much as 6%, while BNB fell 3%; Dogecoin (DOGE) was down 3.4% and Avalanche (AVAX) was down 4.9%.
US Government Moved $2 Billion Worth of Bitcoin!
Last night, the US government moved $2 billion worth of Silk Road Bitcoins that it seized years ago.
While this situation caused investors to panic, it also increased concerns about potential sales pressure. After this transfer, BTC price started to fall.
Mt.Gox Makes Trial Transfers!
Bankrupt cryptocurrency exchange Mt. outside the US Government. Gox is preparing to distribute $5.35 billion worth of Bitcoin to creditors.
Because according to data from Arkham Intelligence, a Mt. Gox address (12Rgp) transferred 0.02 BTC worth $1,350 to another address starting with 1Adb. Similarly, the same address transferred 0.0001 BTC to the address starting with bc1q.
This is Mt. Gox made test transfers before moving the rest of the 80,128 BTC worth $5.35 billion it currently holds.
The Risk of Fall in Bitcoin Continues!
Many analysts state that additional new catalysts are needed for Bitcoin to rise, and that positive macroeconomic events must also occur in addition to these catalysts.
Speaking to Coindesk at this point, Alice Liu, head of research at CoinMarketCap, stated that the latest rise was caused by Donald Trump and warned that the volatility in Bitcoin may be high this week.
“The market received a boost last week as Trump was expected to mention BTC as a strategic reserve asset in his speech at the Nashville Conference.
However, investor optimism in the market reached its peak on the 27th of the month and the “selling the news” phase began. There is no new optimism in the market right now.
Additionally, three central banks, the Bank of Japan, the Federal Reserve and the Bank of England, will announce their interest rate decisions on Wednesday and Thursday. Interest rate decisions to be announced may further increase volatility in the cryptocurrency market.
“So Bitcoin and cryptocurrencies will be extremely volatile this week, so I wouldn't be surprised if the BTC price saw a 10% drop/rise.”
*This is not investment advice.