Crypto prices nosedived in the last 24 hours, with massive liquidations further fuelling the drop in prices. With 3 major supply overhangs (Mt.Gox, US, and German Governments) currently being unloaded onto the BTC markets, the expected selling pressure has brought down prices of the largest crypto asset to levels from six months ago, after breaching the $55k mark earlier today, down 5%.
The broader markets have followed suit with altcoin prices getting crushed, and market-wide liquidations exceeding $300m in the last 24 hours. The latest drawdown in prices began with the German government moving its largest batch of 3,000 BTC ($175m), including over $75m directly to exchanges. The German government has now sent over $300 million worth of BTC to identified exchange addresses and currently holds 40,359 bitcoin, worth about $2.32 billion. But the real sell-off began in the last few hours after Arkham identified that Mt Gox moved 47,228 BTC ($2.71 billion) from cold storage to a new wallet, which might suggest that the redemption process will soon begin! This has sent shockwaves across the broader markets with altcoins plunging 10-20% and overall crypto market cap down to $2.1trn! Worth highlighting is the sharp drop in Pendle (down 20%), which has lost $3 billion of its TVL with the June expiry as a result of diminishing airdrop farming hype and lower yields amid muted crypto activity.
With BTC prices now falling below the 200-day SMA line for the first time since October 2023, the focus now is on the trendline representing the surge from October lows. Traders will keenly observe any bounce back or further downtrend in prices before taking directional bets.
