‘Horrifying’ Crypto Crash Sparks ‘Extreme Fear’ Panic After $2 Trillion in Bitcoin, Ethereum, XRP and Solana Price Wipeout

07/06 update below. This post was originally published on July 04

Bitcoin
Bitcoin
After Federal Reserve Chairman Jerome Powell warned of a “critical period,” one bitcoin fell below $50,000.

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Bitcoin price has lost about 25% in the past month, combined Bitcoin, Ethereum, XRP
XRP
solana and the crypto market is inching closer to hitting $2 trillion in market capitalization for the first time since early February—down from nearly $3 trillion in March.

Now, after a legendary tech billionaire thought bitcoin would replace the US dollar, the collapsed bitcoin exchange Mt. Cox has begun to move Bitcoin’s wave of volatility.

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“On July 5, 2024, The [Mt. Gox] “To whom it may concern,” the letter read, “the rehabilitation trustee repaid certain rehabilitation lenders in bitcoin and bitcoin cash through a portion of designated cryptocurrency exchanges, etc. pursuant to the rehabilitation plan.” Published Mt. Gox website.

Shortly after posting, the document became unavailable, but it was not immediately clear why.

Previously, Bitcoin and Crypto Analysts with Arcam
Arkham
Mt. Gox controlled nearly 50,000 bitcoins worth $2.7 billion transferred to another wallet, the intelligence said, which could be a sign that the crypto will soon be distributed to creditors.

“If an additional 200,000 bitcoins — worth more than $10 billion — hit the markets in the short term, supply would exceed demand and we could see the price of bitcoin fall further,” said Neil Rorty, an analyst at investment site Staclytics. , said in emailed comments.

In late June, Mt. Gox trustees announced the exchange, which collapsed 10 years ago, will begin distributing nearly $10 billion worth of funds in bitcoin, bitcoin cash and fiat currency to its creditors in early July.

07/06 Update: Bitcoin price slide finds a floor, with the broader crypto market recovering slightly after its steep selloff this week.

However, traders and analysts fear that a fall in the price of bitcoin will weigh down ethereum, XRP, solana and other major cryptocurrencies.

The widely followed Crypto Fear & Greed Index, created by data platform Alternative.me, fell to its lowest level since January 2023 after the FTX crypto exchange exploded, sending bitcoin prices down to just $17,000. Now teetering on the brink of “extreme fear”.

“The crypto market cap has fallen below $2 trillion, accelerating its decline and losing more than 8%, while several altcoins have suffered double-digit losses in the past 24 hours,” FxPro senior market analyst Alex Kupczykevich said in emailed comments. He called the fall in the price of Bitcoin “horrific”.

Bitcoin’s “200-day moving average failed to act as support, and we saw acceleration in selling after a break below this line,” Kuptsikevich wrote, adding that Ethereum price “looks like a pause before a new downward trigger. Price may pick up again at $2,300.”

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“Bitcoin’s direction in the coming days will be determined by selling pressure from Mt. Gox users,” Rachel Lin, chief executive of decentralized exchange SynFutures, said in emailed comments.

“The market expects most Mt. Gox users to dump their tokens, but if sales fall short of expectations, we could see a rebound. On the other hand, if there is enough selling to push the price down, we could be looking at the $50,000 level soon.”

Lin warned that “critical levels” for Bitcoin and Ethereum are $60,000 and $3,350, respectively—both of which have now been “decisively” broken.

“As expected, the fall in bitcoin dragged down all other assets,” Lin said. “Ethereum
Ethereum
It’s down almost 9% for the week, and most memecoins are down between 10% and 20%.

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