Heres the Reason Bitcoin is Declining Today Experiencing an Additional 5 Drop

Bitcoin experienced a significant decline today, plummeting by 5%, largely attributed to a series of substantial sell-offs involving the U.S. and German governments, alongside other major investors.
BTC is presently navigating one of its most bearish phases this year, having slumped nearly 21% from its peak of $72,144 on June 7. This downward trend has persisted over four weeks, breaching multiple support levels.
Bitcoin’s Additional 5% Decline Today
Despite demonstrating resilience on June 25 by holding steady around $58,000, the premier cryptocurrency endured a consolidation period lasting six days. However, from June 29 to July 1, a slight uptick hinted at potential bullish momentum returning in July, prompting a positive shift in investor sentiment.
Nevertheless, amid this optimism, some analysts cautioned about a possible resurgence of bearish trends. Uphold’s Head of Research, Dr. Martin Hiesboeck, highlighted a double top formation on Bitcoin’s weekly chart, typically indicative of prolonged downturns.
Indeed, this anticipated downtrend has now materialized, with Bitcoin dropping an additional 5% today. The cryptocurrency has slipped below key price thresholds of $59,000 and $58,000, currently trading at $57,426. This latest decline can be attributed to significant sell-offs by several large investors.
Cause of BTC’s Drop: Large Investor Sell-Offs
Spot On Chain (SOC), an on-chain analytics platform, flagged four major sell-off events. They identified a transfer of 3,500 BTC ($206 million) to Binance, likely signaling an intent to offload holdings by an undisclosed whale, who still retains 4,368 BTC at a loss.
In addition to this, another unidentified address sent 1,023 Bitcoin valued at $62.2 million to Binance today, intensifying selling pressures and exacerbating the ongoing downturn.
Furthermore, attention has been drawn to the actions of the German government. The Federal Criminal Police Office (BKA) recently moved 3,000 BTC, including 1,300 BTC seized in 2013 from the Movie2k piracy platform, to exchanges for sale. Currently, BKA holds 40,359 BTC from the original seizure of 50,000 BTC.
Similarly, the U.S. government transferred 237 Bitcoin worth $13.67 million to a new wallet today, a move typically associated with preparations for asset liquidation. SOC confirmed that the U.S. government still retains 213,000 BTC seized from various enforcement actions.
Mt. Gox Prepares for Repayment
In addition to the sell-off events highlighted by SOC, bankrupt exchange Mt. Gox made headlines today with Bitcoin test transactions as part of their impending compensation plan. Mt. Gox recently confirmed plans to initiate repayments to creditors in early July, holding 141,687 BTC ($8.1 billion).
Meanwhile, The Crypto Basic reported today that a dormant Bitcoin holder reactivated after 12 years to transfer 119 BTC, contributing further to market uncertainty and prompting additional sell-offs, resulting in today’s declines. CryptoQuant data indicated that recent new investors have also been shedding their holdings, collectively divesting $2.4 billion.
Disclaimer: This article provides information and should not be construed as financial advice. The opinions expressed herein are those of the author and not necessarily reflective of The Crypto Basic’s stance. Readers are advised to conduct their own research before making investment decisions, as The Crypto Basic assumes no responsibility for financial losses.