Bitcoin Falls Below $54,000 as Crypto Liquidations Near $665 Million

Bitcoin (BTC) hit a four-month low of $53,499 on Coinbase as news of Mt. Gox’s latest cold wallet transfer hit markets.

Bitcoin has been falling since around 04:19 UTC on July 5, its lowest level since late February, according to TradingView. Meanwhile, cryptocurrency liquidations have spiked to $664.5 million in the past 24 hours, the highest level in two months, according to CoinGlass.

Bitcoin recovered slightly to $54,300, down about 7.4% over the past 24 hours.

Other heavily traded cryptocurrencies, including Ether (ETH) and Solana (SOL), also saw declines of nearly 10% on the day. ETH fell to $2,89,820, below its key $3,000 level it has held since mid-May, according to Cointelegraph Markets Pro.

Cryptocurrency liquidations over the past 24 hours include $584 million in long bets and nearly $82 million in shorts, with BTC long positions accounting for $222 million of the total.

Positive sentiment towards cryptocurrencies also hit its lowest point since January 2023, with the Crypto Fear & Greed Index posting a score of 29 out of 100 on July 5, showing that the market is experiencing “fear.”

Related: Bitcoin Traders Express Optimism Even as BTC Price Targets Drop

Traders are spooked by possible selling pressure expected to come from $8.5 billion in Bitcoin creditor repayments from bankrupt cryptocurrency exchange Mt. Gox.

On July 5, the exchange moved 47,229 BTC, worth about $2.6 billion, to a new address, in its first major move since May.

The German government has increased the pressure on bitcoin sales by selling 7,583 BTC worth $419.5 million since June 19. It still holds 42,274 BTC, worth about $2.3 billion.

10x Research analyst Markus Thielen said on July 4 that he expects Bitcoin to fall as low as $50,000 due to selling pressure on the cryptocurrency.

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Update (July 5, 4:30 UTC): This article has been updated after Bitcoin fell below $54,000, adding new information and updating numbers throughout.