The cryptocurrency market faced severe turmoil in the last 24 hours, witnessing $580 million in liquidations as key cryptocurrencies like Bitcoin and Ether saw significant drops. Movements from a Mt. Gox-linked wallet have unsettled traders, leading to forecasts of a subdued market ahead.
In the past 24 hours, the cryptocurrency market experienced significant turmoil, leading to $580 million in liquidations. Key cryptocurrencies such as Bitcoin (BTC) saw an 8% drop, briefly falling below $54,000, while Ether (ETH) plunged over 10%. Other cryptocurrencies, including Solana (SOL), Cardano (ADA), and Dogecoin (DOGE), also faced substantial declines, with DOGE falling nearly 18%.
This market downturn has been attributed to movements from a Mt. Gox-linked wallet, which unsettled traders. Mt. Gox, a defunct exchange, is set to begin repaying its creditors this month with Bitcoin (BTC) and Bitcoin Cash (BCH), potentially increasing selling pressure in the market. These repayments stem from assets stolen in a 2014 hack, after years of delayed deadlines.
Data from Coinalyze highlighted that bullish trades on Bitcoin and Ether registered over $380 million in losses. The most significant single liquidation occurred on Binance, involving an ETH trade valued at $18.4 million. Additionally, open interest dropped by 12%, suggesting a substantial withdrawal of funds from the market.
These developments have led trading firm QCP Capital to forecast a subdued market for Bitcoin in the upcoming third quarter, primarily due to the uncertainty surrounding the Mt. Gox asset distribution.
