Altcoins
Bitcoin Crashes to $53,800, Altcoins Bleed After $1 Billion Mt. Gox Transfer
Key points to remember
- Bitcoin fell below $54,000 after Mt. Gox transferred $2.7 billion worth of BTC.
- The transfer is tied to a repayment plan to distribute more than $9 billion to creditors.
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Bitcoin’s value fell to $57,000 late Thursday and hit a low of $53,800 in the early hours of Friday, according to data from TradingView. The extended correction came after a $2.7 billion Bitcoin move from a Mt. Gox wallet to a new address yesterday.
On Thursday night, a wallet controlled by Mt. Gox, the now-defunct cryptocurrency exchange, transferred 47,229 BTCworth about $2.7 billion, into a new hot wallet, Arkham data shows.
The latest wallet activity is believed to be part of the Mt. Gox trustee plans to distribute more than $9 billion in Bitcoin, Bitcoin Cash and fiat to creditors starting in July. The trustee publicly unveiled the repayment plan last month.
Bitcoin’s bearish momentum has been compounded by recent moves from Mt. Gox. Pressure has increased in recent weeks due to the The German government and the US Government Bitcoin Transfers.
According to CoinShares, the repayment of Mt. Gox creditors could trigger panic selling in cryptocurrency markets. The worst-case scenario is a 19% daily drop if all BTC are sold simultaneously. But this is a very unlikely case.
As Bitcoin loses momentum, altcoins bleed. Ethereum has plunged below $3,000, losing 10% in the past day, according to CoinGecko data watch.
Over the past 24 hours, Binance Coin (BNB) and Toncoin (TON) have dropped 12% and 13% respectively. Dogecoin (DOGE) and Cardano (ADA) have suffered sharp declines of 15% each. TRON (TRX) has dropped 3.5%.
Fear grips cryptocurrency market as fear and greed index drops to 29, says data from Alternative.me.
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