Bitcoin Breaks Below $55K Amidst Mt. Gox BTC Transfers
- Bitcoin price drops below $55,000 amidst significant selling pressure.
- Mt. Gox transfers $2.7 billion in BTC, sparking market speculation.
- Ethereum falls below $2,900; total crypto market value drops to $2.067 trillion.
Bitcoin's Market Impact from Mt. Gox BTC Transfers
The cryptocurrency market is experiencing significant losses, with Bitcoin dropping below the $55k mark and Ethereum falling below the $2900 mark, indicating strong selling pressure. Additionally, a report by Arkham Mt. Gox Wallets revealed a transfer of $2.7 billion in Bitcoins, sparking speculation in the crypto market.
According to Odaily, over the past 24 hours, the entire network has liquidated $670 million, leading to the total market value of cryptocurrencies dropping below $2.1 trillion. Coingecko data indicates that the total market value of cryptocurrencies currently stands at $2.067 trillion, representing a 24-hour drop of 9.9%. Bitcoin holds a market share of 51.9%, while Ethereum holds a market share of 16.6%.
Additionally, according to Coinglass data, the total liquidation amount of the entire network has surged to $670 million in the past 24 hours, with long orders accounting for $584 million and short orders for $86.004 million.
Decoding the Mt. Gox BTC Transfers
According to Arkham, significant activity at Mt. Gox. At 8:27 UTC+8, Mt. Gox account 1HeHLv...vHoV68 transferred 47.229k BTC, equivalent to $2.71 billion, to an unknown address 1L7Xbx...5J6onk.
Subsequently, address 1L7Xbx...5J6onk sent 44,526.95 BTC (approximately $2.55 billion) to a new address 16ArP3...dXVqdF at 9:56 UTC+8. Additionally, 2,701.78 BTC (about $155 million) was transferred back to Mt. Gox account 1JbezD...KLAPs6.
Later, at 12:19 UTC+8, Mt. Gox account 1JbezD...KLAPs6 transferred 1,157.1 BTC (approximately $63.57 million) to a new address bc1qkjc...2ug68h. Besides, 1,544.67 BTC (about $84.87 million) was transferred to the Bitbank hot wallet via 1PKGGM...iszwzV.
Previously, Mt. Gox made an official statement confirming the completion of the necessary preparations and announcing the commencement of creditors' repayment with BTC and BCH in early July 2024. The entity currently holds 142,000 BTC, 143,000 BCH, and 69 billion yen.
Bitcoin Broke Below $55,000, What Next?
At the time of writing Bitcoin's price was trading at 54,579 with an intraday drawdown of 7.03% extreme bearishness in the market. If Bitcoin breaks below the $54.000 level then the next support is near $49020.
Conclusion
The cryptocurrency market is witnessing a tumultuous phase with Bitcoin's price breaching the $55K threshold, largely influenced by Mt. Gox's substantial BTC transfers. The market's reaction reflects heightened volatility and investor caution, as evidenced by the significant liquidation of assets and the overall market value contraction. As Mt. Gox commences its repayment process, the crypto community is closely monitoring the potential long-term implications on market stability and investor confidence.
