Bitcoin Slumps Below $54,000 as Mt. Gox Moves 47,228 BTC

Published: Jul 5, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

Bitcoin’s price plunged below $54,000 in the last 24 hours, triggering a bloodbath in the overall crypto market.

The sudden crash was likely triggered by an unexpected move from the infamous Mt. Gox exchange.  

Key points:

  • Mt. Gox transfers 47,228 BTC (worth $2.71 billion) from cold storage to a new wallet.
  • Bitcoin price dropped from $57,000 to $53,600, marking an 8.4% decline in 24 hours.
  • Overall crypto market cap shrinks by 8.5%.
  • Crypto liquidations reach $674.59 million in just 24 hours.

The catalyst for this market turmoil was likely the movement of a massive stash of Bitcoin by Mt. Gox.

Blockchain analytics firm Arkham reported that 47,228 BTC, valued at approximately $2.71 billion, was transferred from Mt. Gox’s cold storage to a new wallet.

Also checkout: Tron’s Justin Sun Offers To Buy German Government’s Bitcoin Stash Amid Market Turmoil

Bitcoin price nosedives following Mt. Gox transfer

As news of the Mt. Gox transfer spread, Bitcoin’s price took a nosedive, plunging from around $57,000 to a low of $53,600.

This sharp decline represents an 8.4% drop in just 24 hours, erasing billions in market value. The overall crypto market capitalization mirrored Bitcoin’s performance, shrinking by 8.5%.

The sudden price movement triggered a cascade of liquidations across various cryptocurrency exchanges. According to data from CoinGlass, the total value of liquidated positions reached $675 million in the past 24 hours.  

Source: CoinGlass

Also checkout: ‘Rich Dad Poor Dad’ Author Predicts Bitcoin To Hit $10 Million

Mt. Gox announced last month that the distribution of BTC is likely to occur in July. The large movement seems like the beginning of the exchange’s BTC distribution.

Bitcoin has been on a downward trend in the past few days. The market was also showing signs of weakness as the German government moved around 1,300 BTC yesterday.

Nevertheless, the market is likely to pullback as the FUD surrounding Mt. Gox and the German government offloading Bitcoin fade away. At press time, BTC is trading above $54,000.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.