Bitcoin’s Value Drops to $53,800 as Altcoins Decline After Billion Transfer from Mt. Gox
Bitcoin experienced a significant drop in value, plunging to $57,000 on Thursday and hitting a low of $53,800 early Friday, as per TradingView data. This downward trend followed a massive $2.7 billion Bitcoin transfer from a Mt. Gox wallet to a new address.
The transfer, involving 47,229 BTC, was traced back to Mt. Gox, a defunct cryptocurrency exchange. This movement is part of Mt. Gox’s trustee plan to distribute over $9 billion in Bitcoin, Bitcoin Cash, and fiat to creditors, starting this month, as disclosed by the trustee in June.
The recent activities of Mt. Gox have further intensified the bearish momentum in the crypto market. Over the past weeks, there has been mounting pressure due to Bitcoin transfers by the German and US governments.
CoinShares has warned that Mt. Gox’s creditor repayment could potentially trigger panic selling across crypto markets. The worst-case scenario could lead to a 19% daily decline if all BTC is sold simultaneously, although this outcome is considered highly improbable.
As Bitcoin faced a loss in momentum, altcoins also suffered. Ethereum, for instance, dropped below $3,000, marking a 10% decrease in the past day according to CoinGecko data.
Within 24 hours, Binance Coin (BNB) and Toncoin (TON) witnessed declines of 12% and 13%, respectively. Dogecoin (DOGE) and Cardano (ADA) each experienced a significant 15% drop, while TRON (TRX) was down by 3.5%.
The crypto market sentiment has turned fearful, with the Fear and Greed Index plummeting to 29, indicating a high level of anxiety among investors.
In conclusion, the recent market movements, particularly driven by Mt. Gox’s activities, have led to a bearish sentiment in the crypto space, impacting both Bitcoin and altcoins significantly. Investors are closely monitoring the situation amid heightened market volatility.
