Markets
Crypto Markets Decline Amid Mt Gox Jitters
Wallets linked to the defunct cryptocurrency exchange moved US$9 billion in Bitcoin on May 28.
Crypto markets fell on Tuesday due to fears of a possible sell-off emanating from Mt.
On May 28, wallets linked to the defunct exchange moved almost US$9 billion in Bitcoins to unknown wallets.
Once the largest Bitcoin exchange in the world, Mt. Gox collapsed in 2014 after a major hack resulted in the loss of thousands of BTC. The exchange filed for bankruptcy, leaving creditors waiting a decade for repayment. This event marked one of the most infamous failures in the history of cryptography.
Markets sold off as investors anticipated the possible liquidation of these holdings.
Bitcoin fell 3%, with Ether and Solana falling more than 2%, according to CoinGecko.
“The movement of Mt. Gox’s Bitcoin holdings reminded the market of this infamous event,” Ryan Hong, an analyst at CoinWestern Ventures, told The Defiant. “The potential for a sudden influx of Bitcoin into the market has led traders to reevaluate their positions, contributing to the current market downturn.”
Michael Van de Poppe, CEO of MN Trading, believes the market is “very boring” today. “No breakout happened for Bitcoin as $70K was rejected,” he he said. “I would like $66,000 to be kept as support and then everything will be fine.”
CoinGlass Data show the growing popularity of memecoins among leveraged traders. Notably, four of the top 10 cryptocurrencies by open interest (OI) are now memecoins. Leading the group is Pepe (PEPE), with US$820.5 million in OI. Other memecoins in the top 10 include Dogecoin (DOGE), Dogwifhat (WIF), and Bonk (BONK).
US stock markets are trading flat after the long weekend. The S&P 500 and Dow fell 0.2%, while the Nasdaq rose 0.1%.