Bitcoin Plunges Below $57K, Resulting in the Liquidation of 131,631 Traders

For the first time since May, Bitcoin’s value plunged under the $57K threshold, experiencing a downturn exceeding 5% within a single day. In addition, the Mt. Gox exchange’s dormant wallets have reawakened with exploratory transfers after a month of inactivity, amplifying the probability of disbursing assets and thus intensifying the urge to sell.

This downturn coincided with the transfer of assets worth over $75 million by the German Federal Criminal Police Office to various cryptocurrency exchanges, coupled with noticeable movements in the previously inactive wallets associated with the defunct Mt. Gox exchange for the first time in several weeks.

Over the last day, the trading sphere saw the liquidation of 131,631 traders, amounting to a total liquidation stature of $372.75 million. Binance witnessed the most substantial liquidation transaction for ETHUSDT, which had a value of $18.48 million, as evidenced by this link.

The valuation of the entire cryptocurrency market experienced a descent to $2.09 trillion, indicating a 6.07% decrease from its value a day earlier. The 24-hour cryptocurrency market volume soared to $90.34 billion, marking a significant increase of 34.44%.

Justin Sun, the founder of Tron, has announced his intention to acquire the German government’s Bitcoin portfolio, which exceeds $2.3 billion in value. In an effort to stabilize the market, the notable blockchain innovator expressed his plan to acquire BTC through off-market transactions, disclosing this proposal in a post on the 4th of July to his extensive audience of 3.5 million followers.

The prospect of Bitcoin disposals by the German government became a subject of concern on June 19 when a wallet connected to the authority transacted 6,500 Bitcoins, cumulatively valued at over $425 million. The bitcoin community has been abuzz discussing the potential market impact of the government selling off remaining Bitcoin assets.

Prior to the observed transaction activities, the aforementioned wallet had maintained a sizeable reserve of roughly 50,000 BTC dating back to February 2024. The funds’ origins are suspected to be associated with Movie2k, operators of a pirated movie streaming platform.