How much longer will the Great Coin copycat continue to plummet as the government continues to sell off causing 80000 people to lose 200 million US dollars

Coin World reported:
After Bitcoin reached a low of $53,269 on Friday (5th), it rebounded over the weekend and briefly surpassed $58,000 on the 7th. However, selling pressure emerged and caused a fluctuation in the downward trend. After 5 am this morning (8th), it continued to plummet significantly, with a 6.05% drop in the past 24 hours. Almost all of the rebound from the past two days has been given up.


BTC Latest Trend
The trend of Ethereum is also similar to that of Bitcoin. At the time of writing, it has fallen below $2,850, with a 7.01% drop in the past 24 hours.


ETH Latest Trend
Top ten tokens experienced a general decline
Under the downward trend of Bitcoin, other top ten tokens also fell simultaneously. The deepest decline was observed in Dogecoin (DOGE), with a drop of over 10%. Other tokens such as BNB, SOL, XRP, ADA, etc. also experienced drops exceeding 8%.


Over $200 million liquidated in the past 24 hours
Under the market downturn of Bitcoin, according to Coinglass data, the total amount of liquidations in the cryptocurrency market has exceeded $200 million in the past 24 hours, with over 80,000 people being liquidated.


In this round of market crash, the selling pressure from Mt. Gox is considered one of the main reasons. Mt. Gox is one of the earliest Bitcoin exchanges in the world, but it declared bankruptcy in 2014 after suffering a hacking attack. Its creditors have been waiting for over ten years, during which the price of Bitcoin has skyrocketed by over 10,000%. Recently, Mt. Gox has started to make compensations, causing a significant impact on the market due to a large amount of Bitcoin being dumped.
Meanwhile, the actions of the German government have also intensified the market panic. Investors are worried that the German government’s sell-off will further suppress the price of Bitcoin.
In addition to external factors, the cryptocurrency market also faces multiple challenges internally. The predicament of miners is one of them. Due to the halving effect, the mining rewards of Bitcoin have decreased, causing many inefficient miners to be unable to sustain their operations and forcing them to choose to exit the market. This has led to a significant decrease in Bitcoin’s computing power, further exacerbating market panic.
Furthermore, the listing progress of Ethereum spot ETF in the US market is also facing difficulties. The market initially expected the product to be approved on July 4th, but to this day, there is still no relevant news. This delay has also filled investors with uncertainty about the future of the cryptocurrency market.
In the face of such a complex market environment, how should investors respond?
Several analysts have provided their suggestions. 10xResearch analysts predict that Bitcoin may further drop to $50,000. Josh Gilbert, a market analyst at eToro, also holds a similar view, believing that the price of Bitcoin will be relatively weak in the short term and will test $50,000 or even lower. Andrew Kang, co-founder of cryptocurrency risk investment company Mechanism Capital, is even more pessimistic, suggesting that Bitcoin may experience an extreme pullback to the $40,000 range.
However, despite the market’s uncertainty, some investors see opportunities. TRON founder Justin Sun expressed on social media that he is willing to negotiate with the German government to purchase all Bitcoin off-exchange in order to minimize the impact on the market. Currently, it is advisable to observe the market more and take fewer actions. Investors need to carefully assess risks and formulate reasonable investment strategies.
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