Bitcoin Breaks Record Again Plunges Dramatically NonFarm Payrolls to Blame Bull Run Cut Short

CoinWorldNet Report:
Bitcoin has hovered above the 60,000 integer mark for several days, but today the market finally opted for a downward “acceleration”. It consecutively breached the integer thresholds of 58,000 and 57,000, plunging to a low of 55,000 USD at one point, marking a near two-month low. Ethereum, for the first time in three months, fell below 3,000 to 2,890 USD, leading to a general decline in the crypto market. Over the past 24 hours on Binance’s USDT market, fewer than ten non-stablecoin assets have seen positive gains, with most altcoins setting new lows…
In the last 12 hours, total liquidations amounted to 589 million USD, including 510 million USD in long positions, resulting in significant liquidations of bullish positions.


What triggered this deep correction in the “bull market” under the influence of factors like “halving, ETF, and elections”? Has the bull market truly ended? Is it a case of “bulls die fast”?
Germany sells approximately 10,000 BTC in half a month
Earlier this year, Germany seized 50,000 Bitcoins valued at 2.17 billion USD at the time.
In June, Germany began selling these Bitcoins, selling a total of approximately 9,600 BTC, currently holding 40,359 BTC.
On June 19th, 6,500 BTC were sold;
On June 25th, at 5:20 PM, 400 BTC were transferred to exchanges, and 500 BTC were sent to other addresses;
On June 26th, at 3:50 PM, 750 BTC were transferred out;
On July 1st, at 4:26 PM, 400 BTC were transferred to exchanges; subsequently, 282.74 BTC were transferred to multiple exchanges;
On July 2nd, at 7:20 PM, 361.877 BTC were transferred to Flow Traders;


Yesterday, in transactions, the German government transferred 1,300 BTC to exchanges at 4:25 PM and 1,700 BTC to anonymous wallet addresses at 4:35 PM.
BTC finally fell below the $57,000 support level around 5:15 PM yesterday, reaching a low of $56,952.
Mentougou’s substantial compensation has begun small-scale transfer tests
Mentougou’s compensation issue has weighed on the market, with selling pressures of up to 142,000 BTC and 143,000 BCH, causing market panic on June 24th when BTC briefly dropped near $60,000. However, as distribution transfers had not yet begun, the $60,000 threshold held. According to recent disclosures on the official website, Mt.Gox trustees indicated the start of BTC and BCH repayments from early July.


Mentougou conducted test transfers at noon yesterday. The market had already begun a sharp decline around 9 AM, casting a shadow of doubt not directly related to Mentougou but nonetheless affecting market confidence, especially with significant selling pressure looming ahead.
BTC spot ETF experiences first net outflow after 5 days of net inflows
Bitcoin spot ETF, crucial for observing market buy and sell strengths, shows concerning data with a total net outflow of $20.4495 million on July 3rd, marking the first net outflow after 5 consecutive days of inflows.


Historically, a high net inflow of Bitcoin spot ETF correlates with price increases, while significant net outflows correspond to notable price declines. In May, continuous net inflows supported Bitcoin’s price surge, but by June, total net outflows accelerated significantly, with substantial fund outflows.
What lies ahead?
BTC broke below the $60,000 support level under heavy selling pressure, indicating signs of miner capitulation, historically signaling a price bottom. Comparable drops in hashrate last occurred in 2022 when Bitcoin traded at $17,000. Despite severe crypto market sell-offs, options markets remain optimistic, particularly towards bullish ETH options expiring in September and December.
Considering recent Bitcoin sell-offs and influences from Mt.Gox, miners, and government regulations, along with the impending Ethereum spot S-1 filings, ETH could see a robust rebound.
Now is not the time to panic! Increasing factors are converging towards a potential bottom:
1. Bitcoin has reached multiple time-frame technical indicators.
2. Bitcoin’s weekly chart is nearing the lower Bollinger Band, historically a strong bottom area followed by a washout period of 5 to 7 weeks before a new uptrend begins. (If so, a new uptrend would likely come before the rate cut)
3. Breaking through the $60,000 integer threshold and repeated washouts are likely to intensify panic.
4. Mentougou’s negative news exacerbates market panic; previous Grayscale sales had no response, but negative news during a decline can amplify effects.
5. Currently, some mining machines have shut down due to price.
6. Retail investor confidence is gradually collapsing, with the market fear index hitting a year-long low.
This round isn’t 312, but rather more severe, slowly grinding and cutting.
This bull market is different from the previous one; Bitcoin and Ethereum remain, but altcoins’ current washout in terms of amplitude and duration mirrors the previous bull market correction. Bitcoin may oscillate between $5,000 and $6,000 for some time, with greater opportunities for altcoins thereafter.
With a thorough washout, positive expectations in the future, good narratives will undoubtedly have greater potential. Returning to break-even won’t be an issue; the question is how much profit. However, separate strategies will be necessary for altcoins in the future; we can no longer approach them as we did during bull and bear cycles. The market will only become more challenging, reinforcing my commitment to phase-specific market strategies.
As mentioned earlier, maintain a 50% position, monitor tonight’s non-farm payroll data; if positive, consider adding 10%. However, a bearish outcome is highly likely; in case of a sharp decline, boldly increase positions by two layers. If it’s a slow decline, continue to hold steady and wait for opportunities. Our strategy is always to go with the flow, not gamble on outcomes.
Future analyses will cover leading projects in other fields. Interested parties can follow for more information. I’ll also periodically compile advanced information and project reviews, welcoming fellow enthusiasts from the coin circle to explore together. Questions can be raised in comments or via private message.