The price of Bitcoin (BTC) fell below $59,000 on Thursday, marking a significant decline in the world’s leading cryptocurrency. This drop coincides with over $230 million in liquidations across the cryptocurrency market, according to data from CoinGlass.
Fears surrounding potential sell pressure from upcoming Mt. Gox repayments and miner sales are cited as possible reasons behind the price decrease. Mt. Gox, a defunct cryptocurrency exchange, is scheduled to begin repayments to creditors in July 2024 after a large hack in 2014. Uncertainty surrounding the release of this significant amount of Bitcoin is believed to be impacting the market.
The liquidations observed primarily affected futures contracts that had placed bets on rising prices (long positions). Data suggests these were the highest long liquidations since late June. Crypto exchange Binance recorded the most significant portion of these liquidations, at over $110 million.
The price decline of Bitcoin also impacted other major tokens. Ethereum (ETH) and Solana’s SOL witnessed price drops alongside Bitcoin. The CoinDesk 20 index, a measure of the performance of the top 20 cryptocurrencies excluding Bitcoin, fell by 4.8%.
Trading firm QCP Capital has expressed anticipation of a subdued market in the coming quarter due to the ongoing uncertainty surrounding the Mt. Gox Bitcoin supply release. The situation highlights the interconnectedness of the cryptocurrency market and the potential impact of external factors on prices.
