The cryptocurrency market as a whole has seen significant price declines, leading to billions of dollars worth of cryptocurrency liquidations. This market crash began shortly after Jerome Powell’s anti-cryptocurrency 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.
$100 million worth of BTC transactions on Mt Gox cause shock
On December 19, 2024, blockchain analytics company Arkham posted on X (formerly Twitter) that Mt. Gox moved a significant amount of $102.5 million worth of BTC last night following the Fed’s rate cut meeting. The report also notes that this significant amount of BTC was distributed in three separate transactions to three different addresses, each receiving $30.18 million.
LAST NIGHT: MT GOX MOVES $100 MILLION BTC
Last night at 3:04 UTC, $102.5 million in Bitcoin was transferred from Mt Gox addresses, resulting in a total of $30.18 million distributed to three separate addresses. This BTC was eventually consolidated at this address:
1LMkYUQySZrBnTV5sFwVxGR63LKaq7SBm6
The rest is still… pic.twitter.com/A7XHRWHrFP
— Arkham (@arkham) December 19, 2024
However, Arkham further noted that the remainder were still in the custody of Mt. Gox.
These transactions from a defunct cryptocurrency exchange appear to be having a significant impact on the cryptocurrency market. Mt. Gox is obligated to distribute billions of dollars worth of BTC to its creditors, which greatly impacts BTC prices and the overall cryptocurrency market.
$1.18 Billion Crypto Liquidation
Current market sentiment appears to be extremely bearish, with traders and investors experiencing heightened fear due to billions of dollars in liquidations. The recent market crash led to the liquidation of $1.18 billion in long and short positions, according to data analytics firm Coinglass.
Most of the liquidations occurred on long positions, as traders holding $900 million worth of long positions were liquidated. In contrast, the cryptocurrency market recorded just $160 million in short liquidations in the last 24 hours.
As a result, the overall cryptocurrency market fell by 3.51%, with major assets such as Bitcoin (BTC), Ethereum (ETH), XRP and Solana (SOL) showing an even steeper decline of over 4.75%. 9.2%, 6.5%. and 9% respectively over the last 24 hours. This bearish sentiment is compounded by ongoing concerns surrounding Mt.Gox’s distribution.
