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Bitcoin Falls Below $54,000 Amid $2.7B Mt. Gox Repayments, $683M Market Liquidations Surge

Jul 5, 2024, 06:34 AM

Bitcoin has experienced a significant decline, dropping below $54,000, driven by concerns over the Mt. Gox repayments and broader economic uncertainty. The defunct exchange Mt. Gox has started repaying creditors, moving substantial amounts of Bitcoin, including a $2.7 billion transfer. This repayment process has triggered fears of increased selling pressure, leading to massive liquidations in the crypto market. Over $683 million in positions were liquidated, marking the largest liquidation event since the FTX collapse. Major cryptocurrencies like Ethereum (ETH) and Solana (SOL) also saw declines, with ETH and SOL slipping between 3% and 4%. The market's reaction has also impacted crypto-related stocks, which have seen significant drops in pre-market trading. Analyst Jag Kooner noted that the news of repayments has added significant selling pressure on Bitcoin. Mt. Gox's repayments end a 10-year wait for creditors, with up to $8.2 billion worth of Bitcoin potentially being sold.