Coin World News Report: Bitcoin rose back to $57,000 on Monday morning after falling below $55,000 a few hours ago. The turbulent start of this week has resulted in the liquidation of nearly $160 million worth of BTC.
The leading cryptocurrency in the industry fell to $54,600 in the early hours of Monday but rose 4% to $57,000 in the following 10 hours. According to CoinGecko, at the time of writing, the price of Bitcoin was around $57,175, representing a 0.6% increase for the day.
According to data from CoinGlass, approximately $102 million worth of Bitcoin short positions were liquidated in the past 24 hours, with an additional $57 million worth of long positions also being liquidated. During the same time period, Ethereum only saw liquidations totaling $63 million and re-funding of $3,000.
Amidst the volatility in Bitcoin prices, the market is facing significant selling pressure as the German government is selling off Bitcoin, and 127,000 creditors are waiting for encrypted funds from the bankruptcy estate of Mt.Gox.
According to Arkham’s data, on Monday morning, the German government transferred thousands of BTC to exchanges including Kraken, Coinbase, and Bitstamp. Additionally, it made transfers to several unknown wallets and financial companies, including Flow Traders and Cumberland DRW.
In recent days, the German government has been transferring Bitcoin that was confiscated in criminal cases to cryptocurrency exchanges, causing a sharp drop in leading cryptocurrency prices and raising concerns among critics about the government’s strategy.
According to Arkham Intelligence’s data, despite these recent actions, addresses associated with the German government currently hold over $1.8 billion worth of Bitcoin.
Furthermore, the defunct Mt.Gox exchange has started transferring billions of dollars worth of Bitcoin to prepare for reimbursing creditors. According to Arkham Intelligence, the company’s wallets currently hold $7.9 billion worth of Bitcoin, and many believe that once the Bitcoin is sent to creditors who have been penniless for a decade, it can be sold.
Experts believe that the massive sell-off pressure caused by the sale of Mt.Gox and the German government’s selling is likely a “sign” of the bottom for Bitcoin.
Nevertheless, data from CoinGlass shows that on Friday, the inflow of funds to US Bitcoin exchanges was $143 million, while Hong Kong Bitcoin exchanges had a net inflow of zero.
In this difficult week, the Crypto Fear and Greed Index dropped from 72 points a month ago to 28 points, indicating fear.