After a week of declines, Bitcoin rose to more than $59,000 on Tuesday, but it is still more than 5% lower than a week ago.
Analysts have linked the recent drop in Bitcoin to the start of repayments to lenders from the defunct exchange Mt Gox.
It may take up to 90 days for investors to access their money. However, the market reacted to the verified repayment, demonstrated by the transfer of 47,228 BTC from a cold wallet linked to Mt. Gox, which was presumably intended for repayment.
German Authorities recovered millions of rupees by selling confiscated coins
Another catalyst is the transfer of large amounts of Bitcoin to exchanges by German law authorities.
The owners of the piracy website Movie2k.to, which was last accessed in 2013, had 49,857 Bitcoins seized by the German Federal Criminal Police Office earlier this year. More than 10,000 BTC have been sold by the government since mid-June, causing a drop in the market value of Bitcoin.
As a result, investors who thought the market had overreacted may have taken this as an opportunity to buy at lower prices.
In a related development, the market recovered on Tuesday after German authorities withdrew more than $200 million worth of cryptocurrencies from exchanges.
In Two Weeks, New Bitcoin Whales Lose $1 Billion
Julio Moreno, head of research at CryptoQuant, claims that new Bitcoin whales have lost about $1 billion in the past two weeks. The first quarter of this year was profitable for these new investors. In contrast, long-term Bitcoin investors cashed out their profits in early June.
The amount of unrealized gains has declined significantly during the current downturn, primarily as a result of selling by long-term holders. The current market value to realized value ratio, or MVRV ratio, is approximately 1.5. This suggests that the unrealized gains of market players average fifty percent.
According to this pattern, long-term holders taking profits were mostly responsible for the most recent price change. At a premium, they offered their coins to potential buyers. This activity has resulted in a decrease in the network-wide average unrealized profit.
Last week, Bitcoin (BTC) closed at around $55,850, representing a drop of 11% from the previous week’s close price of around $62,775. Throughout the week, selling pressure was clearly observed. On Thursday, the price of Bitcoin fell to $53,500, then rose to $58,250 and closed at $55,850.
