Bitcoin Loses $57000, Altcoins Crumble

The crypto market has continued to bleed red as prices of cryptocurrencies fell significantly beyond record lows on Thursday.

A notable decrease followed this adverse price action in the global cryptocurrency market capitalization, which dropped by 5.69% to $2.11 trillion over the past day. 

However, the overall market volume saw a notable increase of 43.15% to $93.94 billion, suggesting that many traders are actively selling off their assets, possibly due to panic and broader economic factors.

Bitcoin Triggers Market Panics

The first day of the month saw the market’s leading cryptocurrency, Bitcoin, fall from over $63,000 to $61000. This negative trend has continued till today, and the cryptocurrency has seen its price fall massively to by 5.69% to $56,884 over the last 24 hours.

While these streak losses have fuelled concerns among market traders and investors, reports have traced the Bitcoin crash to massive sell-offs of Bitcoin fortunes by the German government.

After several offloads of bulk Bitcoin assets, the German authorities had recently sold off $17.6 million worth of Bitcoin. While it has also moved out about 3100 Bitcoins today, Germany has liquidated over $200 million worth of Bitcoin in just two days.

Unfortunately, this move has not only affected the price of Bitcoin. Still, it has also triggered panic among traders, leading to more profound losses for altcoins as many opted to sell off their crypto assets to hedge against the impending market turbulence.

According to data from CoinMarketCap, Ethereum, BNB, SOL, and XRP have had their share of the ridiculous market plunge. The assets plunged by 6.35%, 7.85%, 8.69%, and 7.49% to $3095, $514, $130, and $0.4409, respectively.

An Attempt to Market Recovery

While the German government’s move initially triggered bearish sentiments among investors in the broad crypto market, it appears that Bitcoin is already regaining their interest. Social metrics provided by LunarCrush revealed that the bullish sentiment votes on Bitcoin have retraced back to 88%.

This surprising bullish stance is attributable to Justin Sun’s attempt to recover market losses after announcing plans to buy back Bitcoin holdings from the German government to curtail the consistent sell-offs.