The overall cryptocurrency market experienced a significant price drop, resulting in crypto liquidations worth billions of dollars. This market crash started shortly after Jerome Powell’s anti-crypto stance following the Fed’s rate cut and the recent transfer of $100 million worth of Bitcoin (BTC) by the defunct cryptocurrency exchange Mt. Gox.
Mt Gox $100 Million BTC Transactions Send Shockwaves
On December 19, 2024, blockchain intelligence firm Arkham posted on The post also noted that this significant amount of BTC was split between three separate transactions to three different addresses, each receiving $30.18 million.
However, Arkham further noted that the remainder are still in custody at Mount Gox.
These transactions by the defunct cryptocurrency exchange appear to have a significant impact on the crypto market. Mount Gox is required to distribute billions of dollars worth of BTC to its creditors, which has a major impact on BTC prices and the overall crypto market.
Crypto liquidation worth $1.18 billion
Current market sentiment appears extremely bearish, with traders and investors experiencing heightened fear due to billions of dollars in liquidations. According to on-chain analytics firm Coinglass, the recent market crash led to the liquidation of a significant $1.18 billion worth of long and short positions.
The majority of the liquidations came from long positions, as traders with $900 million worth of long positions were liquidated. In contrast, the crypto market witnessed only $160 million in short liquidations in the last 24 hours.
As a result, the overall cryptocurrency market has seen a decline of 3.51%, with major assets such as Bitcoin (BTC), Ethereum (ETH), XRP and Solana (SOL) witnessing even steeper declines of over 4.75 %, 9.2%, 6.5%. and 9% respectively in the last 24 hours. This bearish sentiment is compounded by lingering fears regarding the Mt. Gox distributions.