Altcoins
Bitcoin (BTC) Falls to 5-Month Low, Altcoins Underperform (Market Watch)
The cryptocurrency market has been in a sharp decline over the past 24 hours, with the total market capitalization dropping to $2.07 trillion (an 8.6% drop on the day).
Most major digital assets are in sharp decline, with only a few defying the negative trend by recording only slight increases.
Bitcoin Slips Well Below $55,000
The leading cryptocurrency is among the hardest hit. In the morning (July 5), its price fell below $54,000 for the first time since February. Its fall has negatively impacted numerous over-leveraged traders, while total liquidations increased at nearly $700 million.
Some of the major factors potentially contributing to the BTC pullback are the German government’s decision to to liquidate a substantial amount of his Bitcoin in his wallet and the impending repayment of creditors of the now-defunct cryptocurrency exchange Mt. Gox.
Not long ago, a court-appointed trustee oversaw the company’s bankruptcy proceedings She said Distributions to the approximately 20,000 investors will begin in July. The process includes the refund of over 140,000 BTC (currently worth about $7.7 billion). The exchange recently transferred over $2.7 billion to a different address.
Many lenders may decide to liquidate their savings once they receive them, resulting in a significant increase in the supply of Bitcoin and a subsequent drop in prices.
It will be interesting to see whether the leading digital asset can return to positive territory in the coming days or whether the bears will maintain control and further dampen its valuation.
Alts perform worse
Major altcoins, such as Ripple (XRP), Binance Coin (BNB), Cardano (ADA), and many others, have seen much larger losses than BTC. Ripple’s native token, for example, precipitate at a yearly low of less than $0.40.
The meme coin sector is also in the red, losing nearly 20% of its total market cap. Among the worst performers are Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Floki Inu (FLOKI), Brett (BRETT), and others.
Cryptocurrency Heat Map, Source: Quantify Crypto
Despite the gloomy picture, there are still a few cryptocurrencies (part of the top 100 club) that have seen their prices rise in the last 24 hours. Fasttoken (FTN) is up 3%, while Leo Token (LEO) is up a measly 1%.
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