Is The Bull Market Over? Bitcoin Tumbles To $55K, Liquidating Millions as Crypto Market Turns Red

Bitcoin has been down 5% in the last 24 hours, trading at a two-month low below $55K. Most altcoins are also trading in the red amid widespread market losses.

The global cryptocurrency market cap is down nearly 5% to $2.2 trillion. All the top ten cryptos by market cap are down, with Dogecoin (DOGE) posting the biggest drop of almost 10%.

Bitcoin Tumbles Wiping Out $250M Longs

Bitcoin continued to drop lower on July 4 during the Asian trading session, contributing to the notable spike in the selling pressure. BTC trading volumes are up 40%, with the increase mainly coming from the sellers.

According to X user @DaanCrypto, the losses are expected to extend if Bitcoin exchange-traded funds (ETFs) continue recording outflows. On July 3, total outflows from spot Bitcoin ETFs reached $20 million.

According to Coinglass, the price drop has seen over $78M worth of Bitcoin longs liquidated in the last 24 hours.

According to a CryptoQuant analyst, long-term Bitcoin holders are behind the ongoing selling activity. The analyst noted that these addresses are currently sitting in profits and dumping BTC in the market. Further selling activity by these wallets could dampen the chances of BTC gaining again.

“The highest activity was observed among holders who had kept their Bitcoin for 5-7 years,” the analyst said.

$60,000 was a key support level, and with Bitcoin now breaching this zone, over 16% of BTC holders are now sitting at losses.

According to IntoTheBlock, demand for BTC at the $60K level has historically been weak, indicating that more selling pressure could be on the way. If buyers fail to buoy the bearish sentiment, the next significant demand zone lies at the $50,000 and $40,000 level.

Justin Sun Offers to Buy German Government’s BTC

The German government has been dumping BTC into the market, causing the ongoing price correction.

Data from Arkham Intelligence shows that on July 4, the German government transferred 1300 BTC, valued at over $76 million, to the Bitstamp, Coinbase, and Kraken exchanges. The German government still holds over 40,000 BTC, raising fears of further dumps.

Tron co-founder Justin Sun is now looking to step in and reduce the selling pressure on Bitcoin by the German government.

Sun wants to save the situation by buying all the government’s coins. In an X post, Sun offered to “negotiate with the German government to purchase all BTC off-market in order to minimize the impact on the market.”