Bitcoin price remains in a bear market after dropping by over 21% from its highest level this year. BTC was trading at $57,700 on Wednesday, down from the year-to-date high of $73,816.
Bitcoin price remains in a bear market after dropping by over 21% from its highest level this year. BTC was trading at $57,700 on Wednesday, down from the year-to-date high of $73,816.
Pompliano talks Bitcoin price action
Anthony Pompliano, a well-known crypto investor, has shared reasons for Bitcoin’s bear market.
Pompliano noted that the German government is liquidating over $2 billion in Bitcoin seized from a dark web site.
The government sent these Bitcoins to exchanges like Kraken, Coinbase, Cumberland, and Flow Traders, moving 5,103 coins on Wednesday.
Pompliano also mentioned Bitcoin movements from wallets associated with the collapsed exchange Mt. Gox.
“Look, prices go down because there are more sellers than buyers,” Pompliano explained.
He cited the German government and Mt. Gox distributions as the main culprits for increased selling pressure.
He believes buyers are hesitant due to the influx of coins, affecting Bitcoin’s illiquid market.
Despite the pressure, Pompliano noted Bitcoin’s resilience, maintaining around $50,000.
He remains optimistic about Bitcoin’s long-term outlook, regardless of election outcomes.
Pompliano writes a daily newsletter and runs Pomp Investments, involved with companies like 1inch, Amber, Alchemy, Arbitrum, and Ankr.
Bitcoin miner capitulation
Other factors contributing to Bitcoin’s decline include miner capitulation.
Pompliano cited that Bitcoin often underperforms during summer when many investors are inactive.
Ki Young Ju, founder of CryptoQuant, pointed to miner capitulation as a significant factor.
Recent data shows many miners selling coins from their treasury.
Ju noted that capitulation usually ends when the daily average mined value hits 40% of the yearly average.
Currently at 72%, Ju expects a boring crypto market for the next 2-3 months but remains long-term bullish.
