Crypto Market Faces Significant Losses: Over $679 Million Vanished Below $54,000
In a dramatic turn of events, Bitcoin and altcoins experienced a notable downturn, shedding over $679 million in value. The catalyst behind this sharp decline can be traced to recent activities involving Mt. Gox wallets.
Bitcoin plummeted to $53,400, breaching crucial support levels not seen since late February. This decline was triggered by the movement of a substantial amount of BTC from Mt. Gox’s cold wallet to a new address, totaling 47,228 BTC worth $2.6 billion, as reported by blockchain analytics firm Arkham Intelligence.
Additionally, a significant BTCF transfer of $85 million from Mt. Gox to Bitbank further exacerbated selling pressure. This transfer was part of preparations for the upcoming refunds totaling 140,000 BTC (approximately $7.73 billion), 143,000 BCH, and Japanese Yen, scheduled for early July.
Traders, anticipating these refunds, feared a potential sell-off by creditors who have been awaiting repayment for a decade. This apprehension contributed to widespread selling across the market.
The impact wasn’t limited to Bitcoin alone; altcoins also felt the heat. Ethereum (ETH) dropped by over 11%, reaching $2,869, while Solana (SOL) and Cardano (ADA) dipped 7.4% and 15.4%, respectively. Binance Coin (BNB) and Dogecoin (DOGE) saw declines of 12.1% and nearly 15%.
These price movements triggered a wave of liquidations, with Coinglass data reporting $679 million in leveraged transactions liquidated within 24 hours, including $589 million from long positions and $90 million from short positions. Notably, the largest single liquidation order, valued at $18.48 million, occurred in the ETH/USDT trading pair on Binance.
Experts warned that the selling pressure in Bitcoin could persist, transforming the previous support level of $56,500 into a formidable resistance line. As market volatility continues, stakeholders brace themselves for further developments.
*Disclaimer: This article does not constitute investment advice.
