Join Our Telegram Group

Join Our Telegram Group

Bitcoin is undergoing the second-largest liquidation event in its history. This follows closely behind the infamous FTX collapse in November 2022. Recent on-chain data confirms that market dynamics are being shaken by two major events: Germany’s sale of seized Bitcoin and the beginning of creditor repayments from the defunct exchange, Mt. Gox.

Germany Unloads $3.5 Billion in Seized Bitcoin

Germany is currently in the process of liquidating approximately $3.5 billion worth of Bitcoin seized from the illegal streaming site Blockchain analytics firm Arkham reported that the German government has already moved over $195 million worth of Bitcoin to several major crypto exchanges, including Coinbase, Kraken, and Bitstamp. This move is part of a broader effort to liquidate nearly 50,000 BTC.

The massive sell-off has already started to impact the market, contributing to the recent dip in Bitcoin prices. With Germany still holding over 47,179 BTC worth around $3.06 billion, more sell-offs are expected, adding further pressure to the already volatile market.

Mt. Gox Begins $9 Billion Repayment to Creditors

Adding to the market turmoil, Mt. Gox has commenced the long-awaited repayment process to its creditors. The defunct exchange, once handling over 70% of all Bitcoin transactions, is set to distribute approximately 142,000 Bitcoin and 143,000 Bitcoin Cash, totaling around $9 billion.

The repayment has started creating significant selling pressure as creditors might choose to liquidate their holdings. This has already led to over $313 million in liquidations in the past 24 hours alone, predominantly impacting traders with long positions in Bitcoin and Ethereum.

Market Reaction and Future Predictions

The market’s reaction has been swift and severe. Bitcoin prices dropped to around $59,000 following the announcements, triggering widespread liquidations and increased volatility. Analysts are divided on the long-term impact. Some believe that the market will stabilize as the immediate selling pressure subsides, while others warn of continued volatility as more Bitcoin enters the market from these large-scale liquidations.

With Germany’s ongoing Bitcoin liquidation and Mt. Gox’s significant repayment plan, the cryptocurrency market is bracing for further turbulence. Traders and investors should remain cautious and stay informed as these events unfold, potentially reshaping the crypto landscape.


Get the latest crypto news today and bitcoin updates on CoinBuzzFeed. Stay up-to-date with the latest blockchain insights, expert opinions, and analysis.

Leave A Reply