Major Liquidations and Bitcoin Drop Below $55,000
Over 230,000 traders were liquidated, total liquidations across centralized exchanges reaching $665.8 million.
The cryptocurrency market experienced massive liquidations, amounting to over $665 million in the past 24 hours, as Bitcoin plummeted to $54,422. The significant drop followed movements by the defunct crypto exchange Mt Gox, which transferred nearly 47,229 BTC in preparation for its payout to creditors.
BTC dropped 7.4%, currently trading at $54,422. The decline was triggered by Mt Gox's transfer of nearly 47,229 BTC, valued at approximately $2.7 billion, as it prepares for creditor payouts.
Over 230,000 traders were liquidated, total liquidations across centralized exchanges reaching $665.8 million. Bitcoin alone accounted for $222.1 million in liquidations, with $181.8 million being long positions.
ETH experienced a notable decline of 10.57%, trading at $2,890. Ether liquidations amounted to $163.4 million, with long positions constituting $143.3 million of that total.
Mt. Gox transferred 47,228.7 BTC to a wallet, then redistributed 2,702 BTC and shifted 44,527 BTC to a different address. Additionally, a related address transferred 1,545 BTC to a Bitbank hot wallet, suggesting preparations for creditor repayments.
Peter Chung, of Presto Research, pointed out that Bitcoin Cash (BCH) could experience more intense selling pressure than Bitcoin (BTC) because of its less robust investor base. He indicated that Mt. Gox's creditors might opt to cash out promptly, akin to common airdrop practices.
Recent events have highlighted the cryptocurrency market's volatility, especially given the large-scale transactions and liquidations. Although Bitcoin and Ether are currently experiencing downward pressure, the market correction may offer opportunities for long-term investors. During these turbulent times, all market participants need to stay informed and exercise caution.
