Bitcoin prices took a hit recently, dropping to a low of $53,600 before bouncing back to just over $55,000. This 4.75% decrease in the last 24 hours caused the broader digital asset market, as measured by the CoinDesk 20 Index (CD20), to slide around 6.85%. The drop in prices was attributed to Mt. Gox moving a significant amount of BTC to a new wallet, possibly in preparation for creditor repayments totaling 140,000 BTC ($7.3 billion). There are concerns that creditors might sell their coins immediately upon receipt, leading to potential selling pressure in the market.
Major altcoins like ether and dogecoin also experienced losses during this slump, with ETH dropping by 7.5% and DOGE down by almost 11%. Data from Coinalyze indicated that over $580 million worth of bullish bets were liquidated, with the largest single liquidation order on Binance valued at $18.4 million. Additionally, open interest in futures bets dropped by 12%, suggesting that money was leaving the market.
As bitcoin prices dipped below $54,000, only five mining rigs were profitable for their operators, according to mining giant F2Pool. ASICs less efficient than 23 W/T were operating at a loss at a rate of $0.08/kWh. F2Pool’s graph showed that only four of Antminer’s various rigs and one Avalon rig remained profitable as long as prices stayed above $53,100. This scenario could potentially indicate a “local bottom” for bitcoin prices.
In other news, the chart of the day displayed the U.S. spot bitcoin ETFs’ flows since they began trading in January, overlaid with the BTC price. The initial period saw constant inflows up until early March, coinciding with surges in bitcoin’s price. However, the impact of ETF flows on bitcoin’s price has since diminished.
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