Bloodbath in Bitcoin and Altcoins: Below $54,000, $679 Million Evaporated! So what is the reason for the decline?

Bitcoin and Altcoins Bleed as Mt. Gox Resurfaces

Mt. Gox's recent wallet activity has sent shockwaves through the cryptocurrency market, causing a sharp decline in Bitcoin and altcoin prices.

Mt. Gox Refund Preparations Fuel Selloff

In preparation for upcoming refunds, the bankrupt exchange Mt. Gox has moved a substantial amount of Bitcoin (BTC) to a new wallet. This has triggered concerns that creditors may sell their BTC upon receiving payment, exacerbating market selling pressure.

BTC Plummets Below $54,000

As a result of Mt. Gox's actions, Bitcoin has dropped 8% in the last 24 hours, falling below $54,000. Ether (ETH), Solana (SOL), Cardano (ADA), BNB, and Dogecoin (DOGE) have also experienced significant losses.

Altcoins Feel the Heat

The selling pressure from Mt. Gox refunds has affected altcoins as well. Ethereum has lost over 11%, Solana 7.4%, Cardano 15.4%, BNB 12.1%, and Dogecoin nearly 15%.

Liquidations Surge

Amidst the market volatility, approximately $679 million in leveraged positions have been liquidated in the past 24 hours, primarily long positions. The largest single liquidation occurred in the ETH/USDT trading pair on Binance, amounting to $18.48 million.

Resistance at Former Support

Experts anticipate that the selling pressure may continue, with the horizontal support of $56,500 that once acted as a floor for Bitcoin in May now serving as resistance.

Conclusion

The market remains volatile due to the uncertainty surrounding Mt. Gox refunds. Investors should be cautious and exercise prudence in their trading decisions.

Disclaimer: This information is not intended as investment advice.