Altcoins
Bitcoin Drops to $53,800, Altcoins Bleed After Mt. Gox Billion Transfer
Key points
- Bitcoin dropped below $54,000 after Mt. Gox transferred $2.7 billion in BTC.
- The transfer is tied to a repayment plan that calls for the distribution of more than $9 billion to creditors.
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Bitcoin fell to $57,000 late Thursday and hit a low of $53,800 early Friday, according to TradingView data. The extended correction came after a $2.7 billion move in Bitcoin from an Mt. Gox wallet to a new address yesterday.
On Thursday evening, a wallet controlled by Mt. Gox, the now-defunct cryptocurrency exchange, 47,229 BTC transferredworth about $2.7 billion, on a new hot wallet, Arkham data shows.
The latest wallet activity is believed to be attributable to the Mt. Gox trustee plans to distribute more than $9 billion in Bitcoin, Bitcoin Cash and fiat to creditors starting in July. The trustee made the repayment plan public last month.
Bitcoin’s bearish momentum has been compounded by recent moves in Mt. Gox. There has been mounting pressure in recent weeks due to the German government and the US Government Bitcoin Transfers.
According to CoinShares, the repayment of Mt. Gox creditors could trigger panic selling in cryptocurrency markets. The worst-case scenario is a 19% daily drop if all BTC are sold at once. But this is very unlikely.
As Bitcoin Loses Momentum, Altcoins Bleed. Ethereum Slumps Below $3,000, Losing 10% in the Last Day, CoinGecko data Shows.
In the last 24 hours, Binance Coin (BNB) and Toncoin (TON) have fallen by 12% and 13% respectively. Dogecoin (DOGE) and Cardano (ADA) have suffered sharp declines of 15% each. TRON (TRX) has fallen by 3.5%.
Fear grips cryptocurrency market as fear and greed index plummets to 29, according to data from Alternative.me.
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