Bitcoin is under fire from three sides — here's how to play the drop
Bitcoin is getting slammed from every direction: investors have pulled $3.4 billion from Bitcoin ETFs over 11 straight days, a major holder just disclosed selling some of its stash, and the infamous Mt. Gox exchange moved $739 million worth of Bitcoin — a sign that long-waiting creditors may soon flood the market with coins.
Idea
Three major selling forces are hitting Bitcoin at the same time. First, institutional money is fleeing — $3.4 billion has been pulled from Bitcoin ETFs over 11 consecutive days, the longest streak since they launched. Second, Strategy (one of the largest corporate Bitcoin holders) just disclosed its first-ever Bitcoin sale, which spooks the market. Third, Mt. Gox moved $739 million in Bitcoin from cold storage, signaling that creditors who've waited years may soon dump their coins. When this many sellers line up at once and the price is already trending below key support levels, the pressure usually continues before it reverses.