Gox Behind $1.18 Billion Crypto Liquidations? In detail
The entire cryptocurrency market experienced a massive price drop, resulting in billions of dollars worth of crypto liquidations. This market crash began with Jerome Powell's anti-crypto stance slowing the Fed and the recent loss of $100 million worth of Bitcoin (BTC) on cryptocurrency exchange Mt. Gox following the transfer.
Mt Gox $100M BTC Transactions Send Shock Waves
In the year On December 19, 2024, blockchain intelligence firm Arkham on X (formerly Twitter) reported that Met Gox transferred $102.5 million worth of BTC following the Fed's rate cut meeting the previous night. The article also revealed that this large amount of BTC was distributed to three different addresses in three separate transactions, each of which received $30.18 million.
However, Arkham reveals that the rest are still under the control of Mount Gox.
These transactions have a significant impact on the crypto market due to the lost cryptocurrency exchange. MT Gox is required to distribute billions of dollars of BTC to creditors, which has a significant impact on BTC prices and the crypto market as a whole.
$1.18 Billion Worth Crypto Liquidity
The current market sentiment seems extremely weak, with traders and investors facing heightened fears of billions in cash outflows. According to CoinGlass, an analyst firm on the chain, the recent market crash wiped out an estimated $1.18 billion in long and short positions.
Most of the liquidation came from long positions, as traders holding $900 million worth of long positions were rejected. In contrast, the crypto market saw only $160 million in short liquidity in the last 24 hours.
As a result, the entire cryptocurrency market saw a decline of 3.51%, while major assets such as Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) witnessed steep drops of more than 4.75%, 9.2%, 6.5%. , and 9%, respectively, in the last 24 hours. This pessimism is compounded by ongoing fears surrounding Mt Gox distributions.
