Bitcoin Falls Below $54K Amid $222M Liquidation, Crypto Market Sees $664M Wiped Out

Since February, Bitcoin hit its lowest point, dropping to $53,499 on Coinbase and triggering $222 million in long-position liquidations. The broader crypto market saw $664 million wiped out in the past 24 hours, signaling heightened market volatility and trader anxiety.

Bitcoin Hits Four-Month Low, $222M in Long Positions Liquidated, Crypto Market Suffers $664M Loss

The price of Bitcoin (BTC) reached its lowest point since February, as approximately $222 million in long Bitcoin positions were liquidated in the past 24 hours.

Bitcoin experienced a four-month low of $53,499 on Coinbase following the news release regarding Mt. Gox's most recent cold wallet transfer.

TradingView (via Cointelegraph) said that BTC experienced a significant decline beginning around 4:19 am UTC on July 5, marking its lowest point since late February. Furthermore, CoinGlass reports that crypto liquidations have surged to $664.5 million in the past 24 hours, the highest level in two months.

The bitcoin price has marginally rebounded to $54,300, a decrease of approximately 7.4% over the past 24 hours.

Other widely traded cryptocurrencies, such as Ether and Solana, also experienced losses of approximately 10% on the day. According to Cointelegraph Markets Pro, ETH has fallen to $2,89820, which is below its critical $3,000 level that it has maintained since mid-May.

Over the past 24 hours, the crypto market has liquidated $584 million in long wagers and nearly $82 million in shorts. Of this total, $222 million is comprised of long BTC positions.

Crypto Fear & Greed Index Hits Lowest Since January; Mt. Gox and German Sales Increase Bitcoin Sell Pressure

Additionally, the Crypto Fear & Greed Index, which indicates that the market is experiencing "Fear," has reached its lowest point since January 2023, scoring 29 out of 100 on July 5.

The potential sell pressure anticipated to result from the $8.5 billion in Bitcoin creditor paybacks by the collapsed crypto exchange Mt. Gox has alarmed traders.

On July 5, the exchange made its first significant move since May, transferring 47,229 BTC, approximately $2.6 billion, to new addresses.

Since June 19, Germany's government has sold 7,583 BTC, equivalent to $419.5 million, contributing to the pressure on the Bitcoin sale side. It continues to possess 42,274 BTC, estimated to be worth approximately $2.3 billion.

Markus Thielen, an analyst at 10x Research, predicted that Bitcoin could plummet to as low as $50,000 due to the cryptocurrency's sale pressure on July 4.

Photo: Microsoft Bing