As Bitcoin’s price dropped below the $57,000 level, predictions emerged that it could fall to the $51,000 level.
This forecast came from the U.S. investment news outlet Barrons on July 4, citing a chart analyst. Senior Market Research Analyst Alex Kuptsikevich of FxPro predicted, “Based on chart analysis, there’s a very high chance that Bitcoin could be pushed down to the $51,000 level, a 12% drop from its current price.” He added, “Investors should be prepared for this.”
Earlier in the day, Bitcoin’s $57,000 level had temporarily collapsed due to concerns about a sell-off from Mt. Gox and the German government’s sale of Bitcoin.
As of 6:30 AM on July 5, Bitcoin was recorded at $58,304 on the global cryptocurrency market tracking site CoinMarketCap, reflecting a 1.90% decrease from the day before.
However, Bitcoin had dropped to $56,777 a few hours later, causing the $57,000 level to fall. This is the first time since February 28.
According to the cryptocurrency news outlet CoinDesk, this sell-off is due to growing concerns about a Mt. Gox sell-off and the German government’s decision to put more than $75 million worth of Bitcoin on the market.
The U.S. government also put $240 million worth of seized Bitcoin on the market back in June.
Senior Analyst Lucy Hu from the cryptocurrency investment company MetAlpha analyzed in a Telegram message, “The biggest reason for today’s price drop is because the German government put Bitcoin on the market.”
As Bitcoin plummeted, other cryptocurrencies also fell sharply. Ethereum, the second-largest by market cap, dropped 3.64%, while Solana, the fifth-largest, fell 3.93%.
