Massive selling pressure in Bitcoin persists as the BTC price has crashed another 5.5% in the last 24 hours with its price slipping under $56,000. The recent selling pressure comes as Mt. Gox wallets have become active again and started moving Bitcoins.
Mt. Gox Wallets Move $2.7 Billion Worth of Bitcoins
As per the recent data from Arkham Intelligence, crypto exchange Mt. Gox transferred 47,229 BTC, worth a staggering $2.7 billion, to a new wallet address “1L7XbxQ” two hours ago. However, the transfer raises questions regarding the exchange’s intentions as similar transfers happened to new wallets earlier in May.
However, after the May transfers, Mt. Gox officially declared that it plans to repay the creditors in early July. As we are finally in July, Bitcoin investors have turned jittery anticipating what the Mt. Gox creditors do with their Bitcoins once they receive them. Interestingly, the Arkham data shows that 2,702 Bitcoin have moved back to a cold wallet belonging to Mt. Gox.
The recent news around the Mt. Gox repayment and the sell-off by the German government has led to the Bitcoin price volatility with bears gaining the upper hand. PlnaB, the author of the stock-to-flow model noted:
“Yes yes, German government is selling 50,000 btc (10,000 already sold), and Mt.Gox is giving 142,000 btc back to investors (some may sell) … however I see nothing in the data that indicates structural weakness in bitcoin markets”.
Also Read: Tron’s Justin Sun Ready to Negotiate With German Govt. on Bitcoin Sales
BTC Liquidations Spike
As per data from Coinglass, the Bitcoin liquidations in the last 24 hours have reached close to $200 million. As per the options market data, Bitcoin’s major short-term implied volatilities are up 10%, with the DVol (realized volatility) up 3%.
As a result, Bitcoin’s positive correlation with the global stock markets has tanked further. While the Bitcoin price is down by over 10% on the weekly chart, the global equities continue to hit new all-time highs.
Meanwhile, MSCI Inc.’s gauge of global stocks is hovering near a record high, while the short-term 30-day correlation between Bitcoin and the index is plummeting. This raises the question of whether the risk aversion in the crypto market is an isolated event or a precursor to a cautious quarter for mainstream investments, following a robust first half for stocks.
Also Read: Robert Kiyosaki Predicts Biggest Crash in Bitcoin and Other Asset
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
