[Update] Bitcoin Drops to $53,500, Lowest Level in 5 Months

Bitcoin, the world's largest cryptocurrency, continues its downward trend following Mt. Gox's transfer of funds.

Market fluctuations of top cryptocurrencies as of 11:30 AM on July 5, 2024. Source: Coin360

As reported by Coin68 on the morning of July 5th, Mt. Gox's Bitcoin wallet unexpectedly transferred 47,299 BTC, valued at $2.71 billion USD, to a new address.

Earlier, Mt. Gox confirmed it would begin returning 142,000 BTC assets to customers this month, marking 10 years since the exchange was hacked in 2014, resulting in the loss of 850,000 BTC.

Bitcoin's price has been steadily declining in recent days due to news of government BTC sales by Germany and the US, dropping from $63,500 USD to $56,500 USD on July 4th.

By 11:15 AM on July 5th, the world's largest cryptocurrency continued its descent to $53,500 USD - the lowest price since February 2024. Thus, BTC has lost up to $10,000 USD in value in just the past 2 days.

4-hour chart of BTC/USDT pair on Binance as of 11:30 AM on July 5, 2024

Meanwhile, Ethereum (ETH) has also been affected, dropping to $2,890 USD, a level ETH corrected to before the approval of the ETH ETF in mid-May.

4-hour chart of ETH/USDT pair on Binance as of 11:30 AM on July 5, 2024

At this time, all top 100 altcoins are recording declines ranging from 10-20%.

Price fluctuations of the top 100 largest cryptocurrencies by market cap, screenshot from CryptoBubbles at 11:30 AM on July 5, 2024

Total value of derivative liquidations in the last 4 hours reached $283 million USD, and $457 million USD in the last 24 hours, with long positions accounting for 89.9%.

Derivative liquidation data as of 11:30 AM on July 5, 2024. Source: CoinGlass

The current market situation has many concerned about the scenario of Bitcoin dropping to $50,000 USD, which seems more plausible than ever since late June.