Bitcoin (BTC) saw a significant drop, hitting a low of $56,700 on Thursday, the lowest since May 1st. This drop comes as Bitcoin faces challenges such as US political uncertainties and the sell-off of BTC seized by the German government. These factors have led to a nearly 20% price correction, causing concern among investors.
Investors are considering scenarios if President Joe Biden withdraws his reelection bid, potentially affecting the crypto industry. The overhang from the Mt. Gox Bitcoin exchange case and the sell-off by the US and German governments are also contributing to Bitcoin’s current weakness.
Traders are watching for Bitcoin disposals by governments, while miners are selling tokens, adding to the selling pressure. Despite the negative performance, Glassnode predicts Bitcoin could reach $110,000 before the market peak, with a consolidation phase to retest previous highs.
The Metcalfe Price Valuation suggests $56,000 is a crucial support level for Bitcoin. If this level is not held, the correction could deepen. Bitcoin has regained some ground but remains down 5% in the past 24 hours, with no immediate bullish catalysts to push above $60,000.