Mt Gox announces repayments causing Bitcoin price to drop below 55k

Bitcoin’s price has continued its downward trajectory, falling below the $55,000 mark and revisiting levels last seen in February.
The sell-off of Bitcoin (
BTC
) has intensified amid reports that the defunct crypto exchange
Mt. Gox
transferred more than 47,000 BTC (equivalent to approximately $2.6 billion) to a new wallet in preparation for its $9 billion payout. Currently, the price of Bitcoin stands at $54,561, a value last recorded in February when the leading cryptocurrency by market capitalization was soaring towards a new all-time high.
Subsequent to this transfer, the Mt. Gox trustee officially revealed on Jul. 5, during Friday’s Asian trading session, that the collapsed exchange had “made repayments in Bitcoin and Bitcoin Cash to some of the rehabilitation creditors.” However, the trustee did not disclose the specific amount of BTC sent to the creditors.
In recent times, the cryptocurrency market has faced significant challenges impacting both
investor morale
and miner activities after the April halving event, which reduced mining rewards from 6.25 BTC to 3.125 BTC. Given Bitcoin’s current price, only five ASIC rigs from Avalon and Antminer are deemed profitable, as per f2pool’s
X post
.
The sharp decline below the $55,000 level has exerted pressure on speculators, resulting in liquidations totaling $682 million across various exchanges, encompassing both long and short positions, as reported by Coinglass.
Within the last 24 hours, more than 235,000 traders experienced liquidations, with the largest single liquidation occurring on Binance’s ETH/USDT trading pair, amounting to over $18.4 million. Notably, the total market capitalization of the cryptocurrency market plummeted by over 8% to $2 trillion, contributing to increased sell-offs among speculators, according to CoinGecko.
As mentioned by crypto.news
earlier, TRON founder Justin Sun expressed his readiness to aid the industry by hinting at his interest in purchasing confiscated Bitcoins from the German government through over-the-counter transactions. The commencement of these negotiations remains uncertain; however, with recent movements of Bitcoins from addresses associated with Germany to centralized exchanges, the focus of traders seems to be predominantly on Mt. Gox’s repayments.
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