Bitcoin
‘Terrifying’ crypto crash sparks ‘extreme fear’ panic after $2 trillion price drop for Bitcoin, Ethereum, XRP and Solana
Updated 06/07 below. This post was originally published on July 4th
Bitcoin
Bitcoin
dropped to $50,000 per bitcoin, plunging after Federal Reserve Chairman Jerome Powell warned of a “critical period.”
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Bitcoin price has lost about 25% in the last month as bitcoin, ethereum, XRP combine
XRP
solana and the cryptocurrency market approaching a $2 trillion market cap for the first time since early February — down from nearly $3 trillion in March.
Now, after a legendary tech billionaire said he thinks bitcoin could replace the US dollarbankrupt bitcoin exchange Mt. Gox has begun moving what could be a massive wave of bitcoins.
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Cryptocurrency traders are bracing for another price shock for bitcoin, ethereum, XRP and solana.
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“On July 5, 2024, the [Mt. Gox] the Rehabilitation Trustee has made repayments in bitcoin and bitcoin cash to some of the Rehabilitation Creditors through a portion of the designated cryptocurrency exchanges, etc., in accordance with the Rehabilitation Plan,” said a letter addressed to “to whom it may concern” that was posted to the Mt. Gox website.
Shortly after it was published, the document became unavailable, but it was not immediately clear why.
Previously, Arkham Bitcoin and Cryptocurrency Analysts
Arkham
Intelligence said it saw nearly 50,000 bitcoins, worth about $2.7 billion, controlled by Mt. Gox moved to a different wallet, which could be a sign that the cryptocurrency could soon be distributed to creditors.
“If 200,000 more bitcoins — worth over $10 billion — hit the market in a short space of time, supply will likely outstrip demand, and we could see the price of bitcoin fall further,” Neil Roarty, an analyst at investment platform Stocklytics, said in emailed comments.
In late June, Mt. Gox administrators announced that the exchange, which went bankrupt 10 years ago, would begin distributing nearly $10 billion in funds in bitcoin, bitcoin cash and fiat currency to its creditors in early July.
Update 06/07: Bitcoin’s price decline has found a bottom, with the broader cryptocurrency market recovering slightly after this week’s sharp sell-off.
However, traders and analysts remain fearful that Bitcoin’s price drop could drag down Ethereum, XRP, Solana and other major cryptocurrencies.
The widely followed Crypto Fear & Greed Index, created by data site Alternative.me, has fallen to its lowest level since January 2023, shortly after the price of bitcoin fell to just $17,000 following the implosion of cryptocurrency exchange FTX, and is now teetering on the brink of “extreme fear.”
“The cryptocurrency market cap has fallen below $2 trillion, accelerating its decline and losing more than 8%, while many altcoins have suffered double-digit losses over the past 24 hours,” Alex Kuptsikevich, senior market analyst at FxPro, said in emailed comments that called the bitcoin price drop “terrifying.”
“Bitcoin’s 200-day moving average failed to act as support, and we saw an acceleration in the sell-off after a break below this line,” Kuptsikevich wrote, adding that the ethereum price situation “looks like a pause before a new downward momentum that could take the price back to $2,300.”
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The price of bitcoin has fallen from its recent high of over $70,000 per bitcoin and now looks… [+] risk of falling below $50,000, weighing on Ethereum, XRP, Solana and other cryptocurrencies.
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“Bitcoin’s direction in the coming days will be determined by selling pressure from Mt. Gox users,” Rachel Lin, chief executive of decentralized exchange SynFutures, said in emailed comments.
“The market expects most Mt. Gox users to dump their tokens, but we could see a recovery if the selloff is smaller than anticipated. On the other hand, if there is enough selling to push the price lower, we could be looking at the $50,000 level soon.”
Lin warned that the “crucial levels” for bitcoin and ethereum were $60,000 and $3,350, respectively — both of which have now been “decisively” broken.
“As expected, bitcoin’s decline dragged down all other assets,” Lin said. “Ethereum
Ethereum
is down nearly 9% on the week, and most memecoins are down 10% to 20%.