Bitcoin (BTC) faced downward pressure recently due to concerns about potential selling from the now-defunct Mt. Gox exchange and potential miner sales. The largest cryptocurrency dropped below $59,000 for the first time since April.
Mt. Gox, which suffered a hack in 2014, is set to start distributing recovered assets to affected clients in July 2024. The repayments will be in bitcoin and bitcoin cash (BCH), potentially impacting both markets.
Within the past 24 hours, BTC lost 3.3% in value, initiating a broader market decline. Major cryptocurrencies like Ether (ETH), Solana’s SOL, and dogecoin (DOGE) also experienced notable drops.
The CoinDesk 20 (CD20) index, tracking the top tokens, decreased by 4.8% during this period.
Furthermore, futures trades anticipating higher prices incurred over $230 million in liquidations within the same timeframe. Long positions in BTC, ETH, SOL, DOGE, XRP, and pepe coin (PEPE) suffered significant losses.
These liquidations, especially prevalent on Binance, indicate a reduction in leverage across futures products, potentially leading to short-term decreased price volatility.
QCP Capital, a trading firm, expressed caution about the market in the upcoming months, citing uncertainties related to the Mt. Gox asset distribution. They anticipate a subdued third quarter for BTC.
Overall, the market remains sensitive to factors like large-scale asset distributions and miner activities, with traders closely monitoring developments for potential impacts on cryptocurrency prices.