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In the last 24 hours, Bitcoin experienced a 7% decline. Traders are liquidating their positions extensively. This drop was instigated by the transfer of substantial amounts of BTC from the wallets associated with the Mt.Gox exchange. Concern is mounting in the cryptocurrency market, with analysts cautioning about the potential for additional price decreases.
BTC prices recorded one of the most notable declines in recent history, falling to approximately $53,000. In the past week, Bitcoin has lost around 12% of its value, and in the last 24 hours, the BTC price decreased by 7%. As per CoinGecko, at 11:00 AM (GMT+3) on July 5, it was valued at roughly $54,100.
The primary driver behind the decline was the news regarding significant amounts of BTC being transferred from the wallets of the Japanese cryptocurrency exchange Mt.Gox, which declared bankruptcy in 2014. Arkham Intelligence reported that the exchange moved 47,229 BTC ($2.71 billion) to an unidentified wallet address, followed by another transfer of 1,545 BTC ($84.87 million) to a wallet address on the Bitbank exchange.
A communication from Mt.Gox indicated that the exchange intends to commence debt repayments to creditors in July of this year. In total, it aims to repay $8.5 billion, with refund applications having been closed in 2022.
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Significant BTC transfers have led to heightened anxiety within the cryptocurrency market. The Fear and Greed Index has fallen to 29 points, marking the lowest level this year, which reflects a state of “fear.” Some members of the cryptocurrency community are concerned that repayments from Mt.Gox could exert considerable pressure on Bitcoin, as investors might be inclined to sell their assets. However, Alex Thorn, Head of Research at Galaxy Digital, suggests that most creditors are unlikely to sell the BTC they receive immediately.
Conversely, traders are less optimistic. According to CoinGlass, over $676 million in positions were liquidated in the past 24 hours, with long positions accounting for $578 million. These widespread liquidations impacted not only BTC but also other cryptocurrencies. In the last day, positions in ETH and SOL worth more than $162 million and $24 million, respectively, were closed.
Analysts from 10x Research assert that the current BTC price level may not represent the lowest point this year. They indicate that, in addition to fear, the market is also facing pressures from macroeconomic factors such as inflation and rising interest rates, along with increased regulation of the cryptocurrency sector across various nations. Analysts foresee further declines in BTC prices, which could lead to even larger liquidations.
The drop in Bitcoin prices has traditionally influenced the values of other cryptocurrencies. CoinGecko notes that ETH has decreased by 11% in the past 24 hours, falling below $2,850. BNB and SOL prices have dropped by 12% and 7%, respectively. The overall market capitalization of the cryptocurrency market has decreased by 8% over the last 24 hours, now standing at $2.08 trillion.
In 2024, Bitcoin reached a new all-time high multiple times, and recently, Bitcoin Core developers dispelled the notion of the blockchain network’s invulnerability.
Сообщение BTC Falls Due to Mt.Gox Asset Moves появились сначала на CoinsPaid Media.
