Cryptocurrency Markets Experience Significant Losses: Over $679 Million Vanishes Below $54,000
Cryptocurrency markets witnessed a dramatic downturn, notably affecting Bitcoin and altcoins. The triggering factor was traced to movements in Mt. Gox’s wallets, which caused Bitcoin’s price to breach crucial support levels, plummeting to $53,400 for the first time since February 26.
Mt. Gox, the bankrupt exchange, shifted a substantial 47,228 BTC, valued at $2.6 billion, from its cold wallet to a new address, primarily in preparation for creditor refunds. Further exacerbating the situation, Mt. Gox-linked addresses initiated a BTC transfer worth $85 million to Bitbank.
Recent announcements detailed impending refunds totaling 140,000 BTC (equivalent to $7.73 billion at current rates), 143,000 BCH, and Japanese Yen, scheduled for early July. Concerns escalated among traders fearing a mass sell-off by long-awaiting creditors immediately upon receipt of funds, potentially intensifying selling pressures on the market.
The fallout from Mt. Gox’s refund activities reverberated across the market, affecting not only Bitcoin but also various altcoins. Bitcoin plunged 8% in 24 hours, breaching the $54,000 mark. Ethereum dropped over 11% to $2,869, Solana slid by 7.4%, Cardano by 15.4%, BNB by 12.1%, and Dogecoin by nearly 15%.
The sharp declines led to significant liquidations of long positions, totaling $679 million in leveraged transactions within 24 hours, comprising $589 million in long positions and $90 million in short positions. Coinglass data highlighted that 234,588 investors faced liquidations, with the largest single order being an $18.48 million liquidation in the ETH/USDT pair on Binance.
Experts cautioned that the current wave of BTC sell-offs might persist, transforming the $56,500 support level into a formidable resistance line, marking a pivotal shift in market dynamics.
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