Bitcoin (BTC) Hits Four-Month Low as Mt. Gox Cold Wallet Transfer Sparks Market Fears
Bitcoin (BTC) plunged to a four-month low of $53,499 on Coinbase following news of Mt. Gox’s latest cold wallet transfer, sending shockwaves through the cryptocurrency market. The leading digital currency saw a sharp decline starting on July 5, hitting its lowest level since late February, according to TradingView.
Crypto liquidations surged to $664.5 million in the past 24 hours, marking the highest level in two months, as per CoinGlass. Bitcoin has since recovered slightly to $54,300, down approximately 7.4% in the last day.
Ether (ETH) and Solana (SOL) also experienced significant drops, with ETH falling below the key $3,000 level it had maintained since mid-May. ETH dropped to $2,898.20, while Solana saw a near 10% decline.
The market sentiment towards cryptocurrencies hit its lowest point since January 2023, with the Crypto Fear & Greed Index showing a score of 29 out of 100 on July 5, indicating “Fear” in the market.
Traders are concerned about potential sell pressure stemming from $8.5 billion in Bitcoin creditor paybacks by Mt. Gox, which recently transferred 47,229 BTC to a new address. Germany’s government has also been selling off Bitcoin, adding to the downward pressure on the cryptocurrency.
Analysts, including Markus Thielen from 10x Research, are predicting further downside for Bitcoin, with some expecting the price to drop as low as $50,000. The market remains volatile as investors navigate the latest developments in the crypto space.
As Bitcoin continues to face challenges, the cryptocurrency market is bracing for further turbulence in the coming days. Stay tuned for more updates on this developing story.