🌎 Bitcoin Price Falls Below $55,000 Amid Mt. Gox Payout Concerns

The price of Bitcoin has continued its downward trend, sliding under the $55,000 threshold and returning to levels last seen in February. The sell-off has intensified amid reports that the collapsed crypto exchange Mt. Gox moved over 47,000 BTC, worth around $2.6 billion, to a new wallet ahead of its $9 billion payout. At the time of writing, the price of Bitcoin is $54,561, a level last witnessed in February when the largest cryptocurrency by market capitalization was surging to a new all-time high.

Following the transaction, Mt. Gox trustee confirmed on July 5 during Friday’s Asian trading hours that the collapsed exchange made repayments in Bitcoin and Bitcoin Cash to some of the rehabilitation creditors. However, the trustee did not specify the amount of BTC sent to creditors.

Market Pressure Intensifies Post-Halving

The crypto market has faced significant pressure recently, affecting both investor sentiment and miner operations following the April halving, which reduced mining rewards from 6.25 BTC to 3.125 BTC. At Bitcoin’s current price, only five ASIC rigs from Avalon and Antminer remain profitable.

With Bitcoin trading below $58,000, mining profitability has become a critical concern. At a rate of $0.08 per kWh, ASICs less efficient than 23 W/T operate at a loss.

Liquidation and Market Impact

The rapid drop below $55,000 has pressured speculators, resulting in $682 million in liquidations of both long and short positions across multiple exchanges. Over the past 24 hours, more than 235,000 traders were liquidated, with the largest single liquidation order on Binance’s ETH/USDT trading pair valued at over $18.4 million. The total crypto market capitalization dropped by over 8% to $2 trillion, increasing sell-offs among speculators.

TRON founder Justin Sun has offered to help the industry by expressing his willingness to buy confiscated Bitcoins from the German government over-the-counter. Although it’s unclear when these negotiations will begin, the recent movement of Bitcoins to centralized exchanges from Germany-labeled addresses has made Mt. Gox’s repayments a primary concern among traders.