CoinJie.com Report:
By Interface News Reporter | Feng Saiqi
On July 5th, the cryptocurrency market experienced a widespread decline. Major cryptocurrencies such as Bitcoin, Ethereum, and Binance Coin dropped by approximately 10% over the past 24 hours.
According to data from coinmarketcap, as of 3:30 PM on the 5th, the price of Bitcoin fell below $55,000 per coin, quoting at $54,000 per coin, marking a 7.6% decrease in the past 24 hours and a 12.05% decline over the past 7 days, reaching its lowest point since February this year.
Popular cryptocurrencies like Ethereum, Binance Coin, and Dogecoin also saw continuous declines. As of 3:30 PM on the 5th, Ethereum (ETH) was priced at $2,852.59 per coin, falling below the $3,000 mark, with a 10.53% decline in the past 24 hours and a 17.06% decrease over the past 7 days; Binance Coin (BNB) was quoted at $469.18 per coin, experiencing a significant 12.06% drop in the past 24 hours and an 18.62% decline over the past 7 days.
Data from CoinGlass shows that within the last 24 hours, a total of 234,500 people have been liquidated, amounting to a total liquidation of $679 million. According to data from exchanges such as Binance and OKX, the ratio of long liquidations significantly exceeds short liquidations.
Sentiment in the crypto market has notably turned negative. On July 5th, CoinGlass data indicated that the fear and greed index for the crypto market has shifted to a low of 29 points, indicating widespread investor “fear,” the lowest since January 2023.
Industry insiders point out that this decline may be influenced by the “Mt. Gox incident” and the German government’s sale of Bitcoin. A large influx of Bitcoin into the crypto market has increased downward pressure on cryptocurrency prices.
Recently, Mt. Gox, the Japanese cryptocurrency exchange that went bankrupt in 2014, announced plans to start reimbursing users’ massive cryptocurrency losses in July. Due to its similar pronunciation, Mt. Gox is colloquially referred to as the “head of the valley exchange” by domestic cryptocurrency circles. This exchange was once the world’s largest cryptocurrency exchange but declared bankruptcy in 2014 after suffering massive losses due to a hacker attack.
The court overseeing Mt. Gox’s bankruptcy proceedings recently announced that from July onwards, funds will be returned to approximately 20,000 creditors in the form of Bitcoin and Bitcoin Cash. It is estimated that these cryptocurrencies have a combined value of approximately $9 billion, including about 140,000 Bitcoins.
On July 5th, blockchain analytics company Arkham Intelligence reported that Mt. Gox has transferred 47,000 Bitcoins to a new wallet address, valued at approximately $2.6 billion at current prices.
In June, the bankrupt cryptocurrency exchange Gemini returned over $2 billion worth of Bitcoins to its users, triggering a temporary decline in Bitcoin prices.
JPMorgan analysts predict that, like Gemini users, Mt. Gox users are likely to sell some of the received Bitcoins to profit. The price pressure is expected to be temporary, with prices starting to rebound from August onwards.
In addition, several governments have been selling large amounts of seized cryptocurrencies in the crypto market. Recently, both the US and German governments have started selling Bitcoin. In late June, the US government sold a batch of Bitcoins seized in 2014, totaling approximately 3,940 Bitcoins valued at around $240 million.
According to Arkham Intelligence data, since June 19th, the German government has sold 7,583 Bitcoins worth $435 million. On July 4th, the German government transferred cryptocurrencies worth $172 million to cryptocurrency exchanges like Coinbase, Kraken, and Bitstamp, leading to a significant drop in Bitcoin prices.
