CoinWorld reported:
The cryptocurrency market has been bleeding over the past 24 hours, with total market capitalization plunging to $2.07 trillion (a daily decrease of 8.6%).
Most leading digital assets are in a state of loss, with only a few assets showing counter-trend growth.
Bitcoin drops below $55,000
Bitcoin is one of the most severely affected currencies. Earlier today (July 5), its price dropped below $54,000 for the first time since February. Its collapse has negatively impacted many over-leveraged traders, with liquidations soaring to nearly $700 million.
BTC price, Source: CoinGecko
Some key factors potentially leading to Bitcoin’s retreat include the German government’s decision to liquidate its significant Bitcoin holdings and the impending repayment to creditors of the now-defunct cryptocurrency exchange Mt. Gox.
Recently, the court-appointed trustee overseeing the company’s bankruptcy proceedings indicated distributions would commence in July to approximately 20,000 investors. This process involves repaying over 140,000 BTC (currently valued at around $7.7 billion). The exchange recently transferred over $2.7 billion to another address.
Many creditors may opt to liquidate their hoarded coins upon receipt, significantly increasing the Bitcoin supply and thereby suppressing prices.
Interestingly, whether this leading digital asset can return to green in the coming days or if bears will continue to dominate and further suppress valuations remains to be seen.
Alts perform worse
Leading altcoins such as Ripple (XRP), Binance Coin (BNB), Cardano (ADA), among others, have suffered losses greater than BTC. For instance, Ripple’s native token plummeted to a one-year low below $0.40.
The meme coin sector also faced significant losses, shedding nearly 20% of its total market value. Among the poorest performers are Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (Pepe), Floki Inu (Floki), and Brett (Brett).
Crypto heat map, Source: Quantitative Crypto
Despite the grim outlook, prices of some cryptocurrencies (part of the top 100 club) have risen in the past 24 hours. Fasttoken (FTN) increased by 3%, while Leo Token (Leo) saw a modest 1% rise.
