In the last 24 hours, the cryptocurrency market has experienced a significant decrease in total capitalization, dropping to $2.07 trillion. This 8.6% decrease has had a major impact on leading digital assets, with many seeing losses and only a few managing to maintain positive momentum. The primary cryptocurrency, Bitcoin, has been hit hard, with its price falling below $54,000 for the first time since February. This downfall has resulted in a wave of liquidations, totaling almost $700 million.
There are several factors that may have contributed to Bitcoin’s retreat. The German government’s decision to liquidate a substantial amount of its Bitcoin holdings and the impending repayment of creditors of the now-defunct crypto exchange Mt. Gox are among the key drivers of the negative trend. The court-appointed trustee overseeing Mt. Gox’s bankruptcy proceedings has announced that distributions to investors will begin in July, with over 140,000 BTC set to be repaid, valued at around $7.7 billion. The movement of over $2.7 billion by the exchange to a different address has raised concerns that creditors may choose to sell their holdings upon repayment, leading to an increase in Bitcoin supply and further price depreciation.
It remains to be seen whether Bitcoin and other digital assets can recover from the current downturn and return to positive territory in the coming days. The bearish sentiment in the market has also impacted leading alternative coins like Ripple (XRP), Binance Coin (BNB), and Cardano (ADA), which have all recorded significant losses. Special attention has been drawn to the meme coin sector, with coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Floki Inu (FLOKI) experiencing substantial declines in market capitalization.
Despite the overall negative trend, there are still some cryptocurrencies within the top 100 club that have managed to see price increases in the last 24 hours. Fasttoken (FTN) has seen a 3% rise, while Leo Token (LEO) has recorded a modest 1% increase. These positive performers provide a glimmer of hope in an otherwise challenging market environment.