Bitcoin’s price falls below $59,000, dragging down Ether and Solana. Long liquidations spike as the global market cap drops. Selling pressures include Mt. Gox payouts, whale transfers, and US ETF outflows. Government transfers and reports suggest mixed signals for the market.
Bitcoin experienced a price drop below $59,000, trading at $58,770, down 3.9% in the past 24 hours. Ether and solana also fell, decreasing by 4.6% and 7.3% respectively. The global cryptocurrency market cap decreased to $2.28 trillion. This decline is partly due to a surge in long liquidations, with bitcoin futures alone seeing over $61 million in long liquidations.
Additional selling pressures include the impending redistribution of 142,000 bitcoin to Mt. Gox creditors and a significant whale transfer of 1,723 bitcoin to Binance. There’s also been a net outflow of $20.45 million from US spot bitcoin ETFs, although these ETFs have amassed $52.5 billion since January.
Furthermore, the German government transferred $24 million of seized bitcoin to Kraken and Coinbase. Arkham Intelligence also reported the US government moving 3,940 bitcoin to Coinbase, assets seized from a convicted drug dealer.
CoinShares released a report indicating that the market may withstand the Mt. Gox payouts, as significant portions were taken in earlier settlements or agreed to wait for further litigation. However, Bitcoin Cash is expected to suffer due to its lower liquidity.
