Altcoins
Bitcoin (BTC) Drops to 5-Month Low, Altcoins Perform Even Worse (Market Watch)
The cryptocurrency market has been in a slump for the past 24 hours, with total capitalization dropping to $2.07 trillion (a drop of 8.6% on a daily basis).
Most major digital assets are largely in the red, with only a few defying the negative trend with mere increases.
Bitcoin Falls Well Below $55,000
The main cryptocurrency is one of the most affected. Earlier today (July 5), its price fell below $54,000 for the first time since February. Its fall has negatively impacted many over-leveraged traders, while total liquidations jumped to nearly $700 million.
Bitcoin Price, source: CoinGecko
Some of the major factors potentially contributing to the BTC decline are the German government’s decision to liquidate a substantial amount of its Bitcoin holdings and the imminent repayment of creditors of the now-defunct crypto exchange Mt. Gox.
Not long ago, the court-appointed trustee overseeing the company’s bankruptcy proceedings said Distributions to the approximately 20,000 investors will begin in July. The process includes the repayment of over 140,000 BTC (currently worth around $7.7 billion). The exchange recently transferred over $2.7 billion to another address.
Many creditors could choose to liquidate their reserve upon receipt, leading to a significant increase in Bitcoin supply and, consequently, a decrease in price.
It will be interesting to see if the leading digital asset can return to the green path in the coming days or if the bears will remain in control and reduce the valuation even further.
Alts have poorer results
Major alternative cryptocurrencies, such as Ripple (XRP), Binance Coin (BNB), Cardano (ADA), and many others, have seen much larger losses than BTC. Ripple’s native token, for example, dropped to a one-year low below $0.40.
The cryptocurrency sector is also in the red, losing nearly 20% of its total market capitalization. Among the worst performers are Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Floki Inu (FLOKI), Brett (BRETT) and others.
Cryptocurrency heatmap, source: Quantify Crypto
Despite this gloomy picture, some cryptocurrencies (belonging to the top 100) have seen their prices climb over the last 24 hours. Fasttoken (FTN) is up 3%, while Leo Token (LEO) is up only 1%.
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