Crypto News – Bitcoin Plummets Below $55,000, Triggering $665 Million in Liquidations

Crypto News – Massive $665 Million Liquidation Hits Crypto Market as Bitcoin Crashes Below $55K

Crypto News – The cryptocurrency market has been hit hard over the past 24 hours, witnessing over $665 million in liquidations. This dramatic downturn was primarily driven by significant selling pressure on Bitcoin, which saw its price plummet below the $55,000 mark. Contributing to this market turbulence is the ongoing activity from the defunct Mt Gox exchange, which is moving substantial amounts of Bitcoin as it prepares for creditor payouts.

Bitcoin Drops 7.4% to $54,422 Amid $2.7 Billion Mt Gox Payout Movements

The leading cryptocurrency, Bitcoin (BTC), experienced a sharp decline of 7.4% in the last 24 hours, landing at $54,422 at the time of publishing this report. This sharp decline follows the movement of around $2.7 billion worth of Bitcoin as Mt Gox began to initiate creditor payments earlier this month.

Bitcoin Liquidations Surge: Over $665 Million Liquidated in 24 Hours

In the wake of Bitcoin’s fall, a total of 230,541 traders were liquidated over the past day, resulting in total liquidations across centralized exchanges amounting to $665.8 million, as reported by Coinglass. Bitcoin was at the forefront of these liquidations, with over $222.1 million worth being liquidated. Notably, a significant portion of these liquidations, about $181.8 million, were long positions.

Ethereum (ETH) Faces $163.4 Million Liquidations, Drops 10.57% to $2,890

Ether (ETH), the second-largest cryptocurrency, also faced considerable liquidations, totaling $163.4 million. Of these, $143.3 million were long positions. According to the price page, the price of Ether dropped 10.57% in the last 24 hours to $2,890.

Mt Gox Transfers $2.71 Billion in Bitcoin, Sparks Market Concern

On Thursday night, Mt Gox transferred 47,228.7 BTC (approximately $2.71 billion) to a wallet address, which quickly returned 2,702 BTC and moved 44,527 BTC to another address, according to blockchain tracker Arkham. Hours later, another Mt Gox-related address moved 1,545 BTC (valued at $85 million) to a hot wallet on Bitbank.

Peter Chung Warns of Intensified Selling Pressure on Bitcoin Cash (BCH)

Peter Chung, head of research at Presto Research, suggested that the selling pressure might be more intense for Bitcoin Cash (BCH) compared to Bitcoin, as BCH lacks a strong investor base. He noted, “Given BCH doesn’t have a strong investor base like BTC, the [Mt Gox] creditors will probably seek to cash out immediately just like any other airdrop.”

Despite the volatility, some experts remain optimistic about Bitcoin’s long-term prospects. Ben Caselin, chief marketing officer of Pantera-backed crypto exchange VALR, said: Volatility and periods of selling do not change Bitcoin’s core thesis. With any luck, we can expect prices in the lower 50,000s or even slightly lower for weeks… but nothing fundamental has changed about the market structure and current price movements are really only a concern to short-term speculators.

Understanding Crypto Liquidations: Forced Closures Amid Market Losses

Crypto liquidations occur when a trader’s positions in the market are forcibly closed due to significant losses or an inability to meet margin requirements. This mechanism ensures that trading platforms can recover borrowed funds, but it often leads to substantial losses for traders caught in a sudden price decline.

Conclusion – The past 24 hours have been particularly volatile for the cryptocurrency market, with Bitcoin’s substantial drop triggering widespread liquidations. As the Mt Gox payout process continues to unfold, the market may experience further fluctuations. However, industry experts maintain that these events do not alter the fundamental long-term outlook for Bitcoin and other major cryptocurrencies.

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