Bitcoin Slumps 7% As Crypto Crash Triggers $588 Million Liquidations Amid Mt. Gox Selloff Fears

Updated: 05 July 2024

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

Bitcoin plunged over 7% in the past 24 hours as the latest crypto crash triggered more than $588 million in long liquidations amid Mt. Gox selloff fears.

BTC traded below the $55K mark at $54,269.58 as of 2:25 a.m. EST following a day that saw a bloodbath for digital assets. Crypto’s overall market capitalization plummeted 8% to fall below $2 trillion.

Largest Liquidations Since FTX Collapse

More than $588 million in long positions were liquidated over the past 24 hours, according to CoinGlass data. During the same period, over $93 million in short positions were liquidated as well.

A large portion of these liquidations took place in the last 12 hours and overall were the largest to hit the market since the collapse of FTX, according to renowned crypto trader Michaël van de Poppe. In a July 5 post on X, he urged his 722.8K followers to not “panic sell.”

This latest crypto crash was triggered at least in part by the defunct crypto exchange Mt. Gox after on-chain analytics platform Lookonchain flagged a $2.71 billion BTC transfer from the exchange’s cold storage wallets. There are fears that its repayments will trigger a sharp selloff of BTC.

The #MtGox wallet transferred out 47,229 $BTC ($2.71B) 30 minutes ago, possibly in preparation for repayment in July. pic.twitter.com/DM4ztdeVV5

— Lookonchain (@lookonchain) July 5, 2024

Meme Coins Take A Hit In Latest Crypto Crash

Meme coins got hit especially hard, with leaders Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF) and Bonk (BONK) all suffering double-digit percentage losses.

Top 5 biggest meme coins by market cap (Source: CoinMarketCap)

DOGE and SHIB plummeted more than 15% and 14%, respectively. Frog-themed PEPE and Solana meme coin WIF also saw their prices plunge 15% and 11%. Meanwhile, BONK traded at $0.00001956 after it shed over 11% of its value.

With the Mt. Gox repayments issue hanging over the market, investors might turn to presale tokens that are not yet at the mercy of the open market for shelter amid the storm.

Among favorites among some analysts right now are the layer-2 Pepe Unchained (PEPU), which has raised more than $2.3 million in less than three weeks, and Tamagotchi remake PlayDoge (PLAY), which has already bagged $5.3 million for its Play-To-Earn meme coin project.

Another standout presale is WienerAI (WAI), an AI meme coin that has amassed more than $7 million in funds raised.