Bitcoin took a major hit, dropping to $54,000 and experiencing a 5% decrease in just 24 hours. This represents a significant 27% decline from its all-time high. The market is currently in a state of turmoil, with a total of approximately $685 million in liquidations over the past day. Of this amount, $590 million comes from long positions, making it one of the largest long liquidations of the year, according to data from Coinglass.
The recent volatility in the market coincides with news that Mt. Gox has begun the process of repaying creditors. In an official letter dated July 5, 2024, the Rehabilitation Trustee, Nobuaki Kobayashi, announced that repayments in Bitcoin and Bitcoin Cash are being made to certain creditors through designated cryptocurrency exchanges as part of the Rehabilitation Plan. Further repayments will be made once certain conditions, such as account verification and agreement acceptance, are met.
Moreover, it has been reported that Mt. Gox transferred 47,228 BTC, valued at $2.71 billion, from cold storage to a new wallet. This significant movement of funds is likely a contributing factor to the increased market activity and volatility we are currently seeing.
Overall, the recent drop in Bitcoin price and the large number of long liquidations are indicative of the ongoing fluctuations and uncertainties in the cryptocurrency market. Investors and traders should proceed with caution and closely monitor the situation to make informed decisions.