Bitcoin drops below $54K with $665M in crypto liquidations. Mt. Gox wallet transfer and market fears contribute to the decline.
Bitcoin has plunged below $54,000, reaching its lowest level since February, as the cryptocurrency market experiences significant liquidations. The latest cold wallet transfer from the collapsed exchange Mt. Gox has intensified sell-off fears, resulting in a wave of liquidations and a sharp drop in crypto prices.
Key Points:
Bitcoin Price Drop: Bitcoin hit a four-month low of $53,499 on Coinbase, its lowest point since late February.
Massive Liquidations: Crypto liquidations reached $665 million in the past 24 hours, with $222 million in long Bitcoin positions liquidated.
Broader Market Impact: Other cryptocurrencies like Ether and Solana also saw significant drops, with ETH falling below its key $3,000 level.
Mt. Gox Influence: The latest transfer of 47,229 BTC by Mt. Gox has spooked traders, fearing additional sell pressure from the $8.5 billion in Bitcoin creditor paybacks.
Germany’s BTC Sale: The German government has added to the sell pressure by selling 7,583 BTC since June 19, with more holdings potentially to be sold.
Market Sentiment: The Crypto Fear & Greed Index has dropped to 29, indicating a state of "Fear" among investors.
Analyst Predictions: 10x Research analyst Markus Thielen predicts Bitcoin could fall to $50,000 due to continued sell pressure.
The cryptocurrency market is currently facing substantial pressure, with Bitcoin and other major cryptocurrencies experiencing significant declines. The combination of Mt. Gox's Bitcoin transfers, government sell-offs, and high liquidation levels has created a challenging environment for investors. Market sentiment remains low, and analysts suggest further drops could be on the horizon.
Source: Cointelegraph
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