Mt. Gox has moved over forty-seven thousand BTCs from its cold wallet to an unknown one, and Bitcoin has tumbled. Hard. For the first time since February, the king of cryptocurrencies has dipped below $55,000. Over $110 million was liquidated in the market in only an hour.
Mt. Gox’s transaction, valued at approximately $2.71 billion based on current prices, marks the first major movement of Bitcoin by the defunct exchange since May.
In a statement from Mt. Gox trustee Nobuaki Kobayashi on June 24, creditors were informed that all necessary steps had been completed to begin issuing repayments starting in July.
This announcement follows a prolonged period of anticipation, as creditors have been waiting since the exchange’s collapse in 2014 for compensation.
Experts at 10x Research have noted that Bitcoin’s sharp decline could be just the beginning, with predictions suggesting it might drop further to $50,000.
“Our data from early June already hinted at an overbought market ripe for correction.”
Markus Thielen of 10x Research
The worst is yet to come
Current market movements tell us that Bitcoin’s bearish momentum is only starting. It stands to get so much worse than this. Take a look at the on-chain data below. The bears have completely taken over.
However, with 75% of holders in profit, 7% breaking even, and 17% at a loss, the majority of Bitcoin investors are still in the green despite the recent drop.
Inflows to exchanges over the past seven days amount to $6.79 billion, while outflows are at $5.94 billion. The higher inflows suggest that more BTC is being moved to exchanges, likely for selling.
The derivatives market shows a 46.20% increase in volume, indicating heightened activity and interest. A decrease of 6.66% in open interest suggests some positions are being closed, which could either indicate profit-taking or cutting losses.
Support levels to watch include $53,000 and $50,000. If Bitcoin breaks below these levels, the next major support could be around $48,000. Resistance levels are near $56,000 and $58,000. A break above these levels could trigger reversal or stabilization.
Reporting by Jai Hamid
