Bitcoin has collapsed to $54 thousand

Bitcoin collapsed to $54,000 last night, which could be its biggest drop since the FTX crash.

One of the main factors was the distribution of bitcoins from the Mt. Gox exchange. 52,633 bitcoins were transferred overnight, which had a significant psychological impact on the market and triggered proactive sales.

The second reason for the drop is related to the decision of the German government to begin liquidating its bitcoin reserves. Transactions were recorded on major exchanges such as Bitstamp, Coinbase and Kraken.

Additionally, the market is experiencing a sharp increase in the liquidation of long positions. The pressure on miners due to declining profits also has a negative impact on the value of the cryptocurrency.