Bitcoins Value Dips Below 55000 Following Mt Goxs Announcement of Repayment
In a recent turn of events, Bitcoin’s value has taken a downward trajectory, breaching the $55,000 mark and reverting to figures last observed in February.
The digital currency behemoth, **Bitcoin (BTC)**, has seen an acceleration in its sell-off following news that the defunct cryptocurrency exchange **Mt. Gox** has transferred over 47,000 BTC (valued at approximately $2.6 billion) to a new wallet, in anticipation of its massive $9 billion disbursement. Presently, Bitcoin stands at $54,561, a level not seen since February, which coincided with the cryptocurrency reaching unprecedented heights.
Subsequent to this significant transfer, the Mt. Gox trustee made an official announcement on July 5th, during the Asian trading session on Friday, confirming that the exchange has commenced the process of disbursing Bitcoin and Bitcoin Cash to a portion of the creditors in rehabilitation. However, the exact quantity of BTC distributed has not been disclosed.
In related news, the crypto market has been under considerable strain lately, impacting both **investor sentiment** and mining operations. This is a result of the April halving event, which saw mining rewards halve from 6.25 BTC to 3.125 BTC. With the current valuation of Bitcoin, a mere five ASIC mining models from Avalon and Antminer are deemed profitable, as per the latest data from f2pool’s **X post**.
The abrupt plunge below the $55,000 threshold has put speculators under duress, leading to liquidations totaling $682 million for both long and short positions across various trading platforms, as reported by Coinglass.
In the last day alone, over 235,000 traders have faced liquidation, with the single largest liquidation order occurring on Binance’s ETH/USDT pair, amounting to more than $18.4 million. CoinGecko data indicates that the total market capitalization for cryptocurrencies has fallen by over 8% to $2 trillion, prompting a wave of sell-offs among speculators.
As previously covered by crypto.news, TRON’s founder Justin Sun has expressed a readiness to assist the sector by hinting at his interest in purchasing seized Bitcoins from the German government through an over-the-counter deal. The timeline for these discussions remains uncertain, but the recent transfer of Bitcoins to centralized exchanges from German-associated wallets has shifted the focus of traders towards the repayments from Mt. Gox.
For further reading:
A sudden descent below $57k has led to a wave of capitulation among novice Bitcoin investors, as analyzed by CryptoQuant.
