Cryptocurrency Market in Free Fall as Mt. Gox Moves $2.7B to New Wallet
The cryptocurrency market is in a state of panic as investors worry about the potential sell-off of billions of Bitcoin. The move by defunct cryptocurrency exchange Mt. Gox to transfer 47,228 Bitcoin, worth $2.7 billion, from a cold wallet to a new wallet has sparked fears of a massive sell-off.
Cryptocurrency market in free fall
The Impact on Bitcoin and Ethereum
Bitcoin has plummeted to its lowest level since February 28, with a 9.5% decline since the beginning of the week. The world’s largest digital asset has lost nearly 21% of its value since its all-time high earlier this year.
Ethereum, the second-largest cryptocurrency, has also crashed to a six-week low, erasing all the gains made since the hype of spot ETF approvals in mid-May.
Bitcoin price crash
The Sell-Off and Liquidations
The movement of Bitcoin by Mt. Gox has triggered a wave of liquidations, with $541.45 million in future contracts wiped out in the last 24 hours. Long liquidations accounted for a whopping $472 million.
Bitcoin’s Open Interest has plunged 7% in the last 24 hours. A fall in price, coming alongside a fall in OI, is viewed by some analysts as a good sign because they think the downtrend will end once all long sellers have closed their positions.
Liquidations and Open Interest
Analyst Predictions
Widely followed cryptocurrency analyst Ali Martinez has sounded a bearish alarm, warning of potential downsides to follow for Bitcoin.
“Bitcoin closing below $57,000 could spell trouble, with potential support only at $51,000,” Martinez stated.
On the other hand, popular analyst Rekt Capital has highlighted the possibility of King Crypto peaking around mid-September or mid-October 2025.
“The longer Bitcoin consolidates after the Halving, the better it will be for synchronizing this current cycle with the traditional halving cycle,” the trader opined.
Analyst Predictions
Conclusion
The cryptocurrency market is in a state of flux, with investors worried about the potential sell-off of billions of Bitcoin. While some analysts predict a further decline in Bitcoin’s value, others see a potential peak in the future. One thing is certain - the cryptocurrency market is in for a wild ride.
Cryptocurrency market volatility
