Bitcoin (BTC) is experiencing its worst performance in months, with the price plummeting over 18% in the last 30 days. This dramatic drop coincides with preparations by Mt. Gox, the infamous defunct exchange, to repay creditors a staggering $9 billion worth of Bitcoin.

Mt. Gox Sell-Off Casts a Shadow

Adding fuel to the fire, Mt. Gox recently moved a significant amount of Bitcoin – over 47,000 BTC – to a new wallet. This transaction sparks fears of a massive sell-off by creditors receiving their long-awaited repayments. Analysts warn that this influx of Bitcoin could further suppress the price as the market absorbs the additional supply.

German Government Adds to the Selling Pressure

Further complicating the situation, the German government continues to offload its Bitcoin holdings. Just yesterday, they sold 3,000 BTC, following an earlier dump of 1,300 BTC worth over $78 million. This fire sale by a major institutional holder has undoubtedly contributed to the market’s bearish sentiment.

Whales Join the Fray, Longs Get Liquidated

The bloodbath wasn’t limited to institutional players. Data suggests that three other large Bitcoin whales also dumped their holdings on July 4th, further dragging the price down. Spot On Chain data reveals that the U.S. government even moved some of its Bitcoin holdings, adding to the overall selling pressure.

This market rout resulted in significant liquidations, with long positions taking the biggest hit. Over $100 million in long positions were liquidated in the past 24 hours, highlighting the intense volatility and risk aversion plaguing the market.

BTC/USD Technical Indicators Point to Bearish Control

Technical indicators like the Ichimoku Cloud and On-Balance Volume (OBV) paint a bleak picture, suggesting a strong bearish trend. The ADX indicator further emphasizes this, pointing to a downtrend gaining momentum. With key support levels at $56,000 potentially giving way, Bitcoin’s short-term outlook appears uncertain.

A Glimmer of Hope?

Amidst the market carnage, Tron founder Justin Sun offered to buy all of the German government’s Bitcoin holdings off-market, aiming to minimize the impact on the price. However, the legitimacy of this proposal remains questionable.