CoinDesk Reports:
The cryptocurrency market has been bleeding over the past 24 hours, with total capitalization plummeting to $2.07 trillion (an 8.6% daily decrease).
Most leading digital assets are in the red, with only a few managing to defy the trend with marginal gains.
Bitcoin drops below $55,000
One of the hardest-hit currencies is Bitcoin. Earlier today (July 5), its price fell below $54,000 for the first time since February. Its collapse has had adverse effects on many over-leveraged traders, with liquidation amounts soaring to nearly $700 million.
BTC Price, Source: CoinGecko
Several key factors potentially contributing to Bitcoin’s retreat include the German government’s decision to liquidate a substantial amount of its Bitcoin holdings and the impending reimbursement of creditors from the now-defunct cryptocurrency exchange Mt. Gox.
Recently, the court-appointed trustee overseeing the company’s bankruptcy proceedings indicated plans to commence distributions to approximately 20,000 investors in July. This process involves reimbursing over 140,000 BTC (currently valued at around $7.7 billion). The exchange recently moved over $2.7 billion to another address.
Many creditors may opt to liquidate their holdings upon receipt, significantly increasing the Bitcoin supply and thereby pressuring prices downward.
It remains to be seen whether this leading digital asset can regain positive momentum in the coming days or if bearish sentiment will persist, further suppressing valuations.
Altcoins fare worse
Leading alternative coins such as Ripple (XRP), Binance Coin (BNB), Cardano (ADA), among others, have suffered greater losses compared to BTC. For instance, Ripple’s native token hit a yearly low of below $0.40.
Meme coins are also deeply in the red, losing nearly 20% of their total market value. Among the worst performers are Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (Pepe), Floki Inu (Floki), and Brett (Brett).
Crypto Heatmap, Source: Quantitative Crypto
Despite the grim outlook, some cryptocurrencies (part of the top 100 club) saw their prices rise in the past 24 hours. Fasttoken (FTN) increased by 3%, while Leo Token (Leo) saw a modest 1% rise.