Bitcoin fell 7% to $54,400 in weekend trading. At the same time, some of the losses that were recorded at the end of last week were compensated. The world's largest cryptocurrency by market capitalization fell to a low of $54,000 on Friday, according to Decrypt. The asset is currently trading at $55,100. There are several obstacles to the development of Bitcoin: uncertainty in the cryptocurrency market, possible pressure from the German government and 127,000 creditors waiting to receive funds from the bankruptcy estate of Mt. Gox. By Sunday, the price rose slightly, trying to regain balance above $58,000, but then fell again. This is the lowest level since the end of February.
According to the Arkham Intelligence dashboard, Germany holds 39,826 BTC, worth about $2.2 billion at current rates. At the same time, users of the closed Japanese exchange Mt. Gox expects to recover up to $7.7 billion in funds they lost due to a hack more than 10 years ago.
Payments will begin this month from Mt. Gox after preparing for the distribution of funds. The closed exchange plans to pay out approximately 142,000 BTC and 143,000 Bitcoin Cash. K33 Research, in its latest report on Mt. Gox said it is unclear how much of the total allocation will be sold on the market, but there will be significant selling pressure on Bitcoin.
Cryptocurrency markets are typically quiet during the summer, but due to oversupply and downward momentum, traders may face a busier period. This will happen if a large number of offers fill the order books with low trading volume.
According to CoinGlass, liquidations in the crypto market resulted in $84 million worth of long positions being closed.
In addition, another $35 million of short positions were liquidated, bringing the total to about $210 million. A large-scale sale occurred on Thursday and Friday. At the time, $600 million was liquidated after Bitcoin briefly fell below $55,000. Ryze Labs, a Web3-focused venture capital firm, told Decrypt that broader markets are seeing the impact of liquidity pressures in the second quarter of 2024. It also said the Federal Reserve's reverse repo balance rose more than $200 billion last week to $664.5 billion, indicating a significant liquidity drain.
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