The cryptocurrency market is experiencing a significant sell-off, with Bitcoin and other cryptocurrencies starting today’s trading with substantial losses. The total market capitalization has dropped by 8.3 percent in the last 24 hours.
Bitcoin’s Sharp Decline
Bitcoin has lost almost 8 percent of its value in the past day. Over the past week and month, the price decline is even more severe, at 12 and 23.5 percent, respectively. At the time of writing, BTC is trading at just under $54,330, the lowest level since February this year.
Altcoin Sector Hit Hard
The sell-off is particularly noticeable in the altcoin sector. Ethereum has suffered a loss of nearly 11 percent. The remaining top ten cryptocurrencies have all recorded declines ranging from 7 percent (Solana) to 15 percent (Cardano). Among the top 100, TRON, MultiversX, and FET remain relatively stable, with price declines between 3.8 and 6 percent.
Also Read: KfW Launches €100 Million Blockchain Bond, Marking Digital Finance Milestone
Memecoins and Market Sentiment
Memecoins have also been affected by the strong sell-off, with the sector’s market capitalization falling by 23.3 percent. BASE Memecoin has been hit particularly hard. The market sentiment has darkened considerably, with the Fear and Greed Index currently at 29 points, indicating “fear.”
Also Read: Mike Novogratz’s Top Tip for Learning About Crypto Investing
Significant Liquidations
According to Coinglass, the sharp price drop resulted in over $580 million in long positions being liquidated. WhaleWire reports that this is the second-largest liquidation of capital in the crypto market’s history, surpassed only by the FTX sell-off.
Also Read: Bitcoin Bearish Pressure: Unpacking the Factors Behind the Recent Decline
Key Factors Behind the Sell-Off
Several factors contribute to the current sell-off:
- Mt. Gox Payouts: The insolvent Japanese crypto exchange Mt. Gox recently transferred 47,229 Bitcoin (worth $2.7 billion) from a cold wallet, according to blockchain service Arkham Intelligence. The insolvency administrator had announced that the first payouts to victims would start in July, and Mt. Gox owes its creditors over $8 billion in Bitcoin.
- German Federal Criminal Police Office Sales: The German Federal Criminal Police Office (BKA) is actively selling Bitcoin confiscated from the illegal streaming platform movie2k.to. The authority holds around 50,000 BTC, and over 14,000 have been moved in the past few days and weeks.
Ongoing Crypto Market Crash
Also Read: Timetable Set for Consensys Lawsuit Against SEC
The sell-off in the cryptocurrency market continues, with Bitcoin and other major cryptocurrencies trading deep in the red. The combination of large-scale liquidations, significant transfers by Mt. Gox, and Bitcoin sales by the BKA are key factors driving the market decline.
