Bitcoin’s Weekend Woes: Mt. Gox Creditors Prepare to Cash Out, German Government Sells

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Bitcoin Wipes Weekend Recovery, Market Once Again in Fear
  • After failing to retain $57K, Bitcoin crashed 4.6%, dropping to $55K.
  • The market is in “Fear,” as indicated by the Fear and Greed Index’s value of 28.
  • Mt. Gox repayments and the German government’s BTC sell-off have led to the crash.

Bitcoin’s recent recovery faltered over the weekend, with the cryptocurrency’s price dropping 4.6% in 24 hours and 12.83% over the past week. The broader altcoin market followed suit, adding to the sense of fear reflected in the crypto Fear and Greed Index.

The Fear and Greed Index stood at 28, indicating a state of fear in the market following Bitcoin’s 12.83% decline over the past seven days. According to CoinMarketCap data, the top cryptocurrency currently trades at $55,207, boasting a market capitalization of $1.088 trillion and a 22.73% increase in trading volume to $25.1 billion.

Leading altcoins, including BNB, XRP, Solana (SOL), Cardano (ADA), and Toncoin (TON), fell 4.81%, 6.14%, 6.68%, 6.14%, and 5.61%, respectively. The meme coin market capitalization declined by a substantial 9%, reaching $39.16 billion. The top five meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogelon Mars (ELON), and Bonk (BONK), crashed by 7.08%, 6.55%, 11.03%, 10.14%, and 6.75%, respectively.

Two major events contributed to the significant crypto market crash. Firstly, Mt. Gox, a crypto exchange that collapsed a decade ago, is preparing to repay its creditors in Bitcoin, Bitcoin Cash (BCH), and cash. Last week, the exchange sent 1,544 BTC to the crypto exchange Bitbank.

Creditors are likely to sell a significant portion of the funds released by the exchange. Mt. Gox holds 142,000 BTC (worth $7.8 billion) and 143,000 BCH (worth $44.8 million). Even a small portion of these assets being liquidated could cause further price drops.”

Furthermore, the German government’s renewed Bitcoin sell-off has added to the market downturn. After an unexpected purchase of 1,915 BTC worth $111.5 million, which briefly fueled hopes of a price rebound, the government sold 700 BTC, signaling a return to its previous divestment strategy. Additionally, in the past week, the German government has moved thousands of BTC, confirming the continuation of potential sell-offs.As pointed out by Arkham Intelligence data, the German government holds 39,826 BTC worth around $2.21 billion. The authorities have sold a significant portion of their holdings over the past few weeks, earning criticism from parliament member Joana Cotar.

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