Bitcoin’s market is experiencing lower liquidity due to fewer institutional participants trading during summer vacations, according to Bitfinex.
Analysts noted increased selling pressure and profit-taking among long-term holders, potentially due to the supply overhang from German law enforcement and Mt. Gox sales.
Bitget’s Ryan Lee pointed to recent Bitcoin underperformance stemming from the German government’s transfer of seized Bitcoin to exchanges and Mt. Gox wallet transfers.
Lee also mentioned that Bitcoin’s price falling below the shutdown level for some mining rigs has led miners to hold rather than sell, reducing selling pressure.
Data from Greek.live indicated that the upcoming weekly options expiry has an elevated put-call ratio of 0.65, suggesting more positions are betting on further declines.
Bitcoin’s price has continued to drop, reaching $55,500, down 3% in the past 24 hours.
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