Bitcoin faced sustained downward pressure as more investors deposited their holdings onto exchanges amidst a bearish market sentiment.
According to data from IntoTheBlock, crypto holders transferred more than 21,000 Bitcoin (BTC) to centralized exchanges such as Binance and Coinbase in just the past week. This influx totaled over $1.2 billion as Bitcoin traded around $55,000 on Friday.
Bitcoin’s recent 21% decline over the past month underscores persistent selling pressure driven by macroeconomic factors, institutional withdrawals, government dispositions, creditor settlements, and overall market uncertainty.
Although U.S. inflation data hinted at a slowdown, it fell short of triggering interest rate cuts by the Federal Reserve, which maintained its cautious monetary stance, dampening risk appetite in the process. This cautious approach was upheld as the Fed aimed for its 2% inflation target.
Since the halving event that halved block rewards, some miners opted to sell millions in crypto to cover operational costs. Despite this, Bitcoin has fluctuated below its March peak of $73,000, largely moving sideways or downwards since April, which has had a detrimental effect on mining stocks during recent market dips.
Additionally, Bitcoin’s ETF flows have stagnated, and trading volumes for BTC-backed products on Wall Street have mirrored price movements, according to insights from ETF expert James Seyffart.
Simultaneously, both German and U.S. authorities have deposited significant amounts of Bitcoin onto exchanges over the past fortnight. Criticism from German MP Joana Cotar has been directed at the government’s decision to sell off Bitcoin holdings, arguing instead for its use as a reserve asset.
In the U.S., officials transferred $240 million of seized Silk Road Bitcoin to Coinbase, typically for sale in open markets. Observers noted these transactions occurred via a platform previously sued by the SEC for alleged federal violations.
Friday saw Bitcoin dip by 2%, partly attributed to ongoing repayments related to Mt. Gox, as reported by crypto.news. The defunct exchange began reimbursing users a decade after enduring one of the largest Bitcoin hacks to date.
The broader cryptocurrency market has mirrored Bitcoin’s decline, with IntoTheBlock reporting an 8% drop within 24 hours, bringing the total market value down to $2 trillion, a five-month low. Nonetheless, cryptocurrencies have collectively surged by 24% over the past six months and 73% over the last year.
Despite these challenges, users continue to confirm reimbursements from Mt. Gox, marking over a decade since its collapse.