Is Mt. Gox Behind $1.18 Billion Crypto Liquidations? In Details
The entire cryptocurrency market experienced significant price drops, leading to the liquidation of billions of dollars worth of cryptocurrencies. This market crash began shortly after Jerome Powell moved $100 million worth of Bitcoin (BTC) following the Federal Reserve’s rate cut and the recently defunct cryptocurrency exchange Mt. Gox.
Mt Gox’s $100 million BTC deal triggers shockwaves
On December 19, 2024, blockchain intelligence company Arkham posted on X (formerly Twitter) that Mt. Gox transferred $102.5 million worth of BTC last night after the Federal Reserve’s interest rate cut meeting. The post also noted that a large amount of BTC was allocated to three different addresses through three separate transactions, with each address receiving $30.18 million.
However, Arkham further stated that the remainder remains in the custody of Mt. Gox.
These transactions by the defunct cryptocurrency exchange appear to have had a significant impact on the cryptocurrency market. Mt. Gox was required to distribute billions of dollars worth of BTC to its creditors, which severely affected BTC prices and the entire crypto market.
$1.18 billion worth of cryptocurrency liquidated
The current market sentiment appears to be extremely pessimistic, with traders and investors experiencing high levels of fear due to the liquidation of billions of dollars. The recent market crash resulted in $1.18 billion worth of long and short positions being liquidated, according to on-chain analytics firm Coinglass.
Most of the liquidations came from long positions, with traders holding long positions worth $900 million being liquidated. In comparison, the cryptocurrency market saw only $160 million in short liquidations in the past 24 hours.
Affected by this, the entire cryptocurrency market fell by 3.51%, with major assets such as Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) falling even more than 4.75%, 9.2%, and 6.5% in the past 24 hours. are, and 9% respectively. Ongoing concerns related to the release of Mt. Gox have added to this bearish sentiment.
