Bitfinex analysts have reported that there is currently lower liquidity in the market due to the summer vacations of institutional participants who are actively trading.
This lack of liquidity has exacerbated the sell pressure on Bitcoin, with data showing that long-term holders are also taking profits and exiting their positions.
This could be due to the supply overhang caused by German law enforcement and Mt. Gox’s sales, as well as a general lack of confidence in the market’s strength.
Bitget chief analyst Ryan Lee also believes that recent underperformance in the market can be attributed to the German government’s transfer of seized bitcoin to exchanges, and Mt. Gox’s cold wallet transfers to platforms like Bitbank, causing concerns over potential selling pressure.
