Bitcoin crashed, failing to retain prices above $67,000, and is trading at $64,000.
Bitstamp said that it would begin Mt. Gox repayments on July 25.
Ethereum ETFs saw outflows worth $150 million as ETH fell by more than 7%.
The crypto market experienced a sharp downturn over the last 24 hours after Bitcoin (BTC), the world’s largest digital asset, briefly surged to $67,000 but failed to maintain momentum, falling nearly 2%.
As of this writing, Bitcoin is trading at $64,314, according to CoinMarketCap data, but remains up over 6% in the past 30 days. Since July 2023, BTC has surged an impressive 120.79%, outperforming numerous other digital assets.
A major reason for Bitcoin crashing is the ongoing repayments from the defunct crypto exchange Mt. Gox. Approximately 22 hours ago, Arkham Intelligence data revealed that a Mt. Gox wallet transferred 37,477 BTC (valued at nearly $2.4 billion) to an unknown wallet. Notably, the exchange’s trustees have recently executed several transfers to Bitstamp, a partner assisting with the repayment process.
Bitstamp confirmed on X (formerly Twitter) that it has received BTC from Mt. Gox, and is “working diligently to distribute them to our Bitstamp customers who are Mt. Gox creditors,” noting a separate distribution process for UK creditors.
With repayments set to begin on July 25, panic has gripped the market, turning investor sentiment bearish. Coinglass’ Liquidation Map indicates that over $1.2 billion in Bitcoin shorts could be wiped out if BTC exceeds $67,000, with $2.5 billion in liquidations possible if it surpasses $70,000. Conversely, if Bitcoin drops below $63,000, $540 million in Bitcoin shorts could be liquidated, suggesting a predominantly bearish short-term outlook among investors.
Despite the approval of spot Ethereum exchange-traded funds (ETFs), which recorded $106 million in net inflows and over $1 billion in volumes, Ether crashed by 7% in the past 24 hours and at the time of publication, is trading at $3,168, with a 20% drop in trading volume as per CoinMarketCap data.
While Ethereum ETFs had a successful first day with $106 million in inflows, the second day saw net outflows worth $133.16 million, with $326 million leaving Grayscale’s ETHE, as per the data from SoSoValue. However, spot ETH ETF trading volumes remained above $1 billion, signaling potential bullish sentiment for the future.
The post Crypto Market Update: Bitcoin, Ethereum Tumble as Mt. Gox and ETF News Drive Volatility appeared first on Coin Edition.
