Bitcoin Price Drops Below $54K, Resulting in Nearly $650 Million in Liquidations
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
In the early hours of July 5, the Bitcoin market price reached a four-month low of $53,499 on Coinbase following the news of Mt. Gox’s latest BTC transfer. This development triggered a wave of liquidations in the cryptocurrency market, amounting to $645 million. The largest single crypto liquidation occurred on the Binance exchange, further intensifying the market’s downturn.
Bitcoin Market Trades Accounted for Approximately 35% of the Liquidation
According to a recent report by CoinGlass on the crypto market, total liquidations surged to approximately $645 million over the past day.
In the last 12 hours alone, crypto liquidations totaled $355.35 million.
Bitcoin led the liquidations during this period with $142.29 million, followed closely by Ethereum with $116.87 million and Solana with $15.20 million. Major altcoins like Dogecoin (DOGE), Ripple (XRP), and Shiba Inu (SHIB) also saw significant liquidations, amounting to $80.99 million.
These crypto liquidation events coincide with a continued decline in the Bitcoin market’s price, marking its lowest point since February. At press time, Bitcoin is trading at $54,990, representing a 4.88% drop in the last 24 hours and a substantial 26.06% decrease from its all-time high of $73,750 on March 14, 2024.
Other major cryptocurrencies, such as Ether, Solana, and TON, also experienced nearly 10% declines, with ETH falling below the critical $3,000 level to $2,899.
Several factors contribute to the market downturn. Foremost among them is the German government’s ongoing liquidation of a large portion of its BTC holdings since June 19, which has injected uncertainty and downward pressure into the market.
Mt. Gox’s impending creditor repayments and the looming US Presidential elections in November are fueling market anxiety. The exchange’s recent transfer of $2.71 billion in BTC to a new address has exacerbated volatility and investor trepidation.
UPDATE: Mt. Gox moving $2.71B BTC
In the past 8 hours, Mt. Gox wallets moved 47,229 BTC ($2.71B) from the cold wallet 1HeHL.
2701.8 BTC ($148.4M) was moved out of Mt. Gox wallets with 1544.7 BTC ($84.9M) sent to Bitbank through Gox address 1PKGG, and 1157.1 BTC ($63.6M) sent to… pic.twitter.com/sJEuJB7GwC
— Arkham (@ArkhamIntel) July 5, 2024
Observers and analysts believe that the combination of extensive sell-offs by the German government and negative speculation about the impact of Mt. Gox’s repayments have profoundly impacted the Bitcoin market decline.
Technical Analysis Suggests Further Bitcoin Market Decline
Despite ongoing speculation about a potential Bitcoin market recovery, technical analysis paints a different picture.
The Relative Strength Index (RSI) currently stands at 25.57, down from its previous 37.42, signalling that the asset is trading in oversold territory, indicative of a bearish trend.
Adding to this sentiment, the Crypto Fear and Greed Index has dropped sharply by 29 points, entering the “Fear” zone, aligning with the continued decline in the Bitcoin market.
This index assesses market sentiment by analyzing factors like volatility, trading volume, social media activity, and overall market trends.
A lower score (1 to 50) indicates fear and negative sentiment, contrasting with higher scores (74 to 100) that reflect greed and positive investor sentiment.
Previously, the index was last in the Fear zone on June 24, scoring 21 points when Bitcoin traded at $61,200. Notably, just a few weeks ago, on June 15, the index scored a high of 74 in the “Greed” zone.
This shift pinpoints a growing sense of caution and uncertainty among investors, influenced by recent market trends, selloffs, and ongoing fluctuations in cryptocurrency values.
