Blockchain
Bitcoin Crashes Below $55K: Here’s Where Mt. Gox Refunds Could Push Price – DL News
- Bitcoin and Ether prices have dropped significantly since June.
- The total market capitalization of all cryptocurrencies has dropped by nearly 9% in the last 24 hours.
According to data from CoinGecko, the price of the largest cryptocurrency by market cap has dropped nearly 7% to near $54,000 over the past 24 hours.
Ether also fell about 10% to around $2,850, falling below $3,000 for the first time since mid-May.
The collapse of the two largest cryptocurrencies by market cap has caused the total value of the cryptocurrency market to fall by nearly 9% to $2.08 trillion.
The market downturn comes as Mt. Gox, one of the first cryptocurrency exchanges that collapsed more than a decade ago, has finally begun refunding customers after a lengthy bankruptcy process, according to a I notify on its website, which currently returns a page not found error.
In total, Mt. Gox creditors expect to receive $9.2 billion in Bitcoin.
“The market expects most Mt. Gox users to sell their tokens, but we could see a rebound if sales are lower than expected,” said Rachel Lin, co-founder and CEO of SynFutures, a decentralized crypto derivatives exchange. DL News.
Wider market crisis
The sudden drop in the price of Bitcoin and other cryptocurrencies extends a month of losses.
Despite the recent approval by the U.S. Securities and Exchange Commission on spot Ethereum exchange-traded funds, the market has not seen the same recovery it saw after the approval of Bitcoin ETFs in January.
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Since the beginning of June, Bitcoin has fallen nearly 20%, from around $67,000.
Ether also fell about 24% from around $3,700.
Lin says it’s possible that Bitcoin’s price could fall further in the wake of the Mt. Gox payments: “If there’s enough selling to push the price lower, we could soon hit the $50,000 level.”
The drivers of the cryptocurrency market
- Solana has dropped about 6% in the last 24 hours, settling at $125.
- XRP dropped 12.5% to around $0.4.
What are we reading?
Ben Weiss is a Dubai-based correspondent at DL NewsGot a suggestion? Email him at bweiss@dlnews.com.