The crypto sector again experiences a challenging situation with Bitcoin’s significant slump. The top crypto asset instantly dropped below the $54k spot, raising speculations about the possible reasons behind this. The market onlookers have pointed toward Mt. Gox, Germany, and so on among the chief possible causes. Even though the market has slightly recovered, Bitcoin is still down more than 7%.

Bitcoin Plunges Below $54k, Raising Concerns about Mt. Gox and Germany

The above-mentioned factors have reportedly had a combined impact on the current situation of the Bitcoin market. As a result of this, the top crypto has gone through a substantial decline from $71k to just $57k. This reportedly indicates a twenty percent dip and such an incident has not taken place since for a long time. A prominent factor behind the current scenario deals with Mt. Gox (a crypto exchange that crashed back in 2014).

A hacking attack reportedly brought about the collapse of the crypto exchange. Nonetheless, in recent months, the news revealed that the platform is willing to recompense its creditors. In this respect, the representatives of the exchange will reportedly distribute up to 142,000 BTC among the consumers. This amount accounts for approximately 0.68% of the cumulative supply.

Several people are afraid that the consumers will decide to sell the obtained BTC tokens. They will reportedly have a large amount of BTC in total and such a decision will surely influence the market. Hence, just out of this fear, several are selling the assets in their possession. In this respect, Mt. Gox has recently transferred nearly $2.71 billion worth of Bitcoin to some anonymous address. The respective transaction accounts for a 47,229k BTC.

Another top reason for this dump relates to the government in Germany. The German authorities reportedly possess a huge BTC amount and have begun selling the assets. In addition, the US government is also selling its Bitcoin holdings. Both countries posses confiscated Bitcoin hence all of the selling money is their profit.

The market analytics disclose that the government recently transacted up to 400 BTC tokens to some crypto exchanges. These exchanges take into account Kraken, Coinbase, and Bitstamp. Cumulatively, the authorities have moved nearly 2,700 BTC to the exchanges within the last couple of weeks. Based on these factors, Bitcoin’s price is showing a considerable drop.

In addition to these two latest factors, Bitcoin ETF outflows and miners’ selling pressure after the 4th Bitcoin halving is also playing a role in the underperformance of Bitcoin lately.