Bitcoin drops below $54K as crypto liquidations near $665M

Bitcoin hit a four-month low of $53,499 on Coinbase as news of Mt. Gox’s latest cold wallet transfer hit the markets. Bitcoin plummeted at around 4:19 am UTC on July 5, hitting its lowest level since late February, according to TradingView. Additionally, cryptocurrency liquidations have surged to $664.5 million over the past 24 hours, the highest in two months, according to data from CoinGlass. Bitcoin has slightly recovered to $54,300, down around 7.4% in the last 24 hours. Other highly traded cryptocurrencies, including Ether and Solana’s, also saw almost 10% drops on the day. ETH dropped to $2,898, below the key $3,000 level that it held since mid-May, according to Cointelegraph Markets Pro. Crypto liquidations over the past 24 hours include $584 million in longs and almost $82 million in shorts, with long BTC positions making up $222 million of the total.

Positive sentiment toward crypto has also hit its lowest point since January 2023. The Crypto Fear and Greed Index reflected a score of 29 out of 100 on July 5, showing the market is experiencing “Fear.” Traders are spooked by possible sell pressure expected to come from $8.5 billion in Bitcoin creditor paybacks by the collapsed crypto exchange Mt. Gox. On July 5, the exchange transferred 47,229 BTC, worth around $2.6 billion, to a new address in its first major move since May. The German government has added to the pressure, selling 7,583 BTC worth $419.5 million since June 19. It still holds 42,274 BTC, which is worth around $2.3 billion. On July 4, 10x Research analyst Markus Thielen said he expects Bitcoin to fall as low as $50,000 due to selling pressure on the cryptocurrency.