Ethereum
‘Terrifying’ crypto crash sparks ‘extreme’ panic after $2 trillion drop in Bitcoin, Ethereum, XRP and Solana
Updated 06/07 below. This post was originally published on July 04
Bitcoin
Bitcoin
crashed toward $50,000 per bitcoin, plunging after Federal Reserve Chairman Jerome Powell warned of a “critical period.”
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The price of bitcoin has lost about 25% over the past month, with the combination of bitcoin, ethereum and XRP
XRP
Solana and the cryptocurrency market are 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 believes bitcoin could replace the US dollarCollapsed bitcoin exchange Mt. Gox has started moving what could be a tidal wave of bitcoin.
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Cryptocurrency traders are bracing for another price shock in 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 certain of the Rehabilitation Creditors through a portion of the designated cryptocurrency exchanges, etc., in accordance with the Rehabilitation Plan,” reads a letter addressed to “whom it may concern.” published on the Mt. Gox website.
Shortly after its publication, the document was no longer available, but the reason was not immediately clear.
Previously, Arkham’s Bitcoin and Crypto Analysts
Arkham
Intelligence agencies said they saw nearly 50,000 bitcoins worth about $2.7 billion controlled by Mt. Gox moved to another wallet, which could be a sign that the crypto could soon be distributed to creditors.
“If an additional 200,000 bitcoins, valued at over $10 billion, hit the markets in a short period of time, supply will likely exceed 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 trustees announced that the exchange, which collapsed 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 07/06: The bitcoin price drop has found a bottom, with the broader cryptocurrency market rebounding slightly after its sharp decline this week.
However, traders and analysts still fear that the drop in bitcoin price could cause ethereum, XRP, solana and other major cryptocurrencies to fall.
The widely followed Cryptocurrency Fear and Greed Index, created by data site Alternative.me, has fallen to its lowest level since January 2023, just after the price of bitcoin crashed to just $17,000 following the implosion of cryptocurrency exchange FTX, and is now on the verge of “extreme fear.”
“The cryptocurrency market cap has fallen back below the $2 trillion mark, 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 calling the bitcoin price drop “terrifying.”
“Bitcoin’s 200-day moving average failed to act as support, and we saw an acceleration of selling after a break below this line,” Kuptsikevich wrote, adding that the ethereum price situation “looks like a pause before a new downward impulse that could push the price back to $2,300.”
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The price of bitcoin has crashed from its recent high of over $70,000 per bitcoin and now sits at… [+] risk of crash 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, CEO of decentralized exchange SynFutures, said in emailed comments.
“The market expects most Mt. Gox users to dump their tokens, but we could see a rebound if sales are lower than expected. On the other hand, if there are enough sales to push the price down, we could soon reach the $50,000 level.”
Lin warned that the “crucial levels” for bitcoin and ethereum were $60,000 and $3,350 respectively, both of which have now been “firmly” breached.
“As expected, bitcoin’s fall dragged all other assets down,” Lin said. “Ethereum
Ethereum
is down nearly 9% over the week, and most memecoins are down 10-20%.