Bitcoin Crash: $683M Positions Wiped Out Amid Mt. Gox Payouts

The cryptocurrency market has been thrown into turmoil following the recent repayments by the Mt. Gox Rehabilitation Trustee. As highlighted by Colin Wu, a reporter, On July 5, 2024, the Rehabilitation Trustee of Mt. Gox initiated repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) to some rehabilitation creditors. 

These repayments were executed through a part of the designated cryptocurrency exchanges, in alignment with the Rehabilitation Plan. Although some creditors have received their payments, others must wait until specific conditions are met. The trustee requests these eligible creditors to remain patient during this process.

As further noted by CryptoRank, an analytic firm, approximately $683 million worth of positions were liquidated on major futures exchanges. This liquidation coincided with a sharp decline in Bitcoin’s price, which fell nearly 8% over the past 24 hours, reaching a low of around $53,500. This significant drop in Bitcoin’s value had a ripple effect on the broader cryptocurrency market, causing other cryptocurrencies to experience similar declines.

The leading futures exchanges that experienced substantial liquidations included Binance, with $345 million, and OKX, with $173 million. Additionally, HTX, Bybit, and CoinEx saw liquidations of $72.1 million, $54.5 million, and $19.7 million, respectively. Long positions were particularly affected, with $399 million liquidated compared to $65 million in short positions. This indicates a heavy bias toward long positions, which accounted for 86.4% of the total liquidations.

At press time, the live Bitcoin price stands at $54,531.83, with a 24-hour trading volume of $50,085,740,280. Bitcoin has decreased by 5.48% in the last 24 hours. The one-day Relative Strength Index (RSI) for Bitcoin is 24.97, suggesting that the cryptocurrency is oversold in the short term. 

This oversold condition may present a buying opportunity for traders looking to enter the market. However, the one-day Moving Average Convergence Divergence (MACD) is trading below the signal line, indicating further downward momentum for Bitcoin in the near future.