Bitcoin dropped to $53,499 on Coinbase amid market news of Mt. Gox’s cold wallet transfer. This marks Bitcoin’s lowest point since February. At around 4:19 am UTC on July 5, Bitcoin hit a four-month low, according to TradingView.
Crypto liquidations surged to $664.5 million in the last 24 hours, the highest in two months, as reported by CoinGlass. Long Bitcoin positions accounted for $222 million of these liquidations.
Bitcoin has since slightly recovered to $54,300, but it remains down 7.4% in the last 24 hours. Other major cryptocurrencies, like Ether and Solana, also experienced significant drops. Ether fell nearly 10% to $2,898.20, breaking its key $3,000 level.
In the past 24 hours, crypto liquidations included $584 million in longs and nearly $82 million in shorts. The market sentiment is at its lowest since January 2023, with the Crypto Fear & Greed Index scoring 29 out of 100, indicating “Fear.”
Traders are concerned about potential sell pressure from the $8.5 billion Bitcoin creditor paybacks by the collapsed exchange Mt. Gox. On July 5, Mt. Gox transferred 47,229 BTC, worth about $2.6 billion, to a new address, its first major move since May.
Adding to the selling pressure, Germany’s government has sold 7,583 BTC, worth $419.5 million, since June 19. It still holds 42,274 BTC, valued around $2.3 billion.
10x Research analyst Markus Thielen predicted on July 4 that Bitcoin might fall to $50,000 due to increased sell pressure.
