On Friday, the cryptocurrency market saw a significant drop. This was a continuation of the recent selling pressure. Bitcoin (BTC), the most popular cryptocurrency, has fallen to $53,500, a retracement of over 20% since its peak in May and June.
Market declines were largely attributable to the Mt. Gox bankruptcy who has announced the start of Bitcoin Cash and Bitcoin repayments to creditors Affected by the hacking scandal that caused billions in loss.
In just one day, over $170 billion of combined cryptocurrency market capitalization was lost.
Bitcoin Payments and German Government Sale
Nobuaki K. Kobayashi is the trustee of Mt. Gox bankruptcy estate, Nobuaki Kobayashi, stated The first Bitcoin Cash and Bitcoin exchanges have begun to accept Bitcoin as payment.
Although the exact amount that was transferred in these exchanges wasn’t specified data Arkham, a market intelligence platform, revealed that 47 229 BTC worth $2.71 billion had been sent to an unidentified address.
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Kobayashi stressed that any remaining money would be returned as soon as possible to creditors. “specific conditions” The requirements were completed, which included verifying the registered accounts and concluding discussions with designated exchanges.
In the past 24 hour, over 229 755 traders experienced liquidations totaling $639.58 millions. 540.46 Million of this total represented long trades. These are positions that investors have taken in anticipation of long-term asset appreciation.
In addition, the German Government contributed to the pressure on the market by selling about 3,000 BTC from A, which is equivalent to approximately $175,000,000. seized stash Movie2k is a group of movie piracy operations that has been linked to 50,000 BTC. Even after the sale, the government holds more than 40,000 BTC valued at $2 billion.
History of Price Cycles: What Does it Tell Us?
Industry insiders, analysts and investors remain confident about Bitcoin’s future performance despite the continuing bloodbath in cryptocurrency prices that we have witnessed over the past few months.
Mt. Experts predict a recovery towards the end. Cryptodata and research company CCData suggested Bitcoins’ current cycle of appreciation hasn’t peaked yet and is likely to reach new highs.
History shows that the Bitcoin halving, a reduction in new BTC supply, usually occurs between 12 and 18 month before a price increase. In April of this year, the most recent Halving took place. It is possible that further price increases could occur into 2025.
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Tom Lee, the co-founder of Fundstrat Global Advisors and its head of research, said to CNBC that, despite Mt. Gox overhang.
Launch of an Ethereum exchange-traded fund The approval of the US’s first Bitcoin ETF and (ETF) earlier in this year contributed to the positive market sentiment, which indicates potential growth as well as further mainstream adoption.
BTC’s price is $55,680 at the moment of this writing. This represents a 21% decline in the last month. BTC’s price is closely monitored by bulls on the market, who believe that $54,480 represents a significant support level. The $54,480 price level represents a critical level as it prevents further price drops and could reduce the likelihood of BTC falling below the $50,000 threshold.
Chart from TradingView.com, image from DALLE
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Source: www.newsbtc.com