Bitcoin has plummeted to $53,000 per BTC, plummeting after Federal Reserve chair Jerome Powell warned of a "critical period."
Bitcoin price has lost around 25% over the past month, with the combination of BTC, ETH, XRP, solana markets and cryptocurrencies approaching a $2 trillion market cap for the first time since the beginning of the month 2—down from nearly $3 trillion in March.
Now, after a legendary tech billionaire said he thinks bitcoin can replace the U.S. dollar, bitcoin exchange Mt. Gox has begun moving an amount of bitcoin that could create a tsunami that could cause the price of BTC to fall below 50K per bit.
"On July 5, 2024, the BTC paymaster [Mt. Gox] made payments in bitcoin and bitcoin cash to certain recovery creditors through a portion of the cryptocurrency exchanges designation, etc. according to the recovery plan,” a letter to “those interested” was posted on the Mt. Gox has the article.
Immediately after posting, this document was no longer available but it is unclear why.
Previously, bitcoin and cryptocurrency analysts with ArkhamArkham +1.5%Intelligence agency said they saw nearly 50,000 bitcoins worth about $2.7 billion attributed to Mt. Gox control was transferred to another wallet, a sign that the cryptocurrency may soon be distributed to creditors.
Neil Roarty, an analyst at investment platform Stocklytics, said in email comments: "If an additional 200,000 bitcoins - worth more than $10 billion - come to market in the short term, the supply There may be excess demand and we could see bitcoin prices drop to even lower levels."
At the end of June, the trustees of Mt. Gox announced that the exchange, which collapsed 10 years ago, will begin distributing nearly $10 billion worth of bitcoin, bitcoin cash and fiat currency to creditors in early July.
"Bitcoin's direction in the coming days will be determined by selling pressure from Mt. Gox users," Rachel Lin, chief executive officer of decentralized exchange SynFutures, said in emailed comments. .
“The market expects most Mt. Gox users to sell off their tokens, but we could see a recovery if sales are lower than expected. On the other hand, if there are enough sales to push the price lower , we could see $50,000 soon.”
Lin warned the "critical levels" for bitcoin and ethereum are $60,000 and $3,350 respectively - both of which have now been "clearly" broken.
“As expected, bitcoin's decline has dragged down all other assets,” Lin said. "Ethereum is down nearly 9% for the week and most memecoins are down between 10% and 20%.
