KEYTAKEAWAYS
- Over $665 million in crypto liquidations occurred in 24 hours
- Bitcoin price dropped 7.4% to $54,422 following Mt. Gox's token movements
CONTENT
Mt. Gox’s $2.7 billion Bitcoin movement triggers market-wide sell-off, causing significant liquidations across major cryptocurrencies. Experts weigh in on short-term volatility and long-term market outlook.
The cryptocurrency market experienced a substantial downturn in the past 24 hours, with over $665 million in liquidations across centralized exchanges. This market turbulence coincides with Bitcoin‘s price plummeting below $55,000, largely attributed to the defunct Mt. Gox exchange’s recent movement of approximately $2.7 billion worth of Bitcoin.
As of the latest data, Bitcoin has dropped 7.4% in the last 24 hours, trading at $54,422. This significant price decline follows Mt. Gox’s transfer of substantial Bitcoin holdings, a move linked to the exchange’s impending creditor payouts scheduled to commence early this month.
The liquidation data from Coinglass reveals that 230,541 traders were affected during this market downturn. Bitcoin led the liquidations with over $222.1 million, of which $181.8 million were long positions. Ethereum also faced considerable pressure, with $163.4 million in liquidations, including $143.3 million in long positions. Ethereum’s price experienced a more severe 10.57% drop, settling at $2,890.
Blockchain tracker Arkham reported that Mt. Gox moved 47,228.7 BTC ($2.71 billion) to a wallet address, which subsequently redistributed the funds. This movement has sparked concerns about potential selling pressure, particularly for Bitcoin Cash (BCH).
Peter Chung, head of research at Presto Research, suggested that BCH might face stronger selling pressure compared to BTC, as it lacks a robust investor base. He speculated that Mt. Gox creditors might opt for immediate liquidation of BCH holdings.
Despite the short-term volatility, industry experts maintain a positive long-term outlook. Ben Caselin, chief marketing officer of VALR, emphasized that these price fluctuations do not alter Bitcoin’s fundamental value proposition. He projected that prices might remain in the lower $50,000 range for several weeks but asserted that the market’s core structure remains intact.
As the crypto market navigates this period of uncertainty, investors and traders are closely monitoring further developments related to Mt. Gox’s payouts and their potential impact on market dynamics.
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