Cyptos Plunge As Mt. Gox Supply Dominates A String Of Bad News

Cryptocurrencies tumbled in the past 24 hours as supply concerns triggered by the Bitcoin offload related to the Mt. Gox Exchange exacerbated lingering market concerns about cryptocurrencies. Renewed uncertainty surrounding the U.S. Presidential race, Bitcoin release by the German Government, absence of decisive rate cut hints in the FOMC minutes as well as the looming U.S. jobs data weighed heavily on sentiment.

Aggregate crypto-market capitalization breached the $2 trillion mark to drop to a 4-month low of $1.96 trillion. It is currently at $1.97 trillion, versus $2.13 trillion a day earlier. More than 40 percent of the top-100 cryptocurrencies are trading with overnight losses in excess of 15 percent.

The decline of more than 7.5 percent in the past 24 hours comes amidst Mt. Gox Bitcoin Exchange transferring 47,229 BTC and the German Government transferring 1,300 BTC to various cryptocurrency exchanges/wallets. Mt. Gox, a Japan-based Bitcoin exchange that ceased operations in 2014 and commenced liquidation proceedings, had in the last week of June announced the commencement of repayments. Mt Gox is expected to return over 140,000 Bitcoin to its creditors, the fear of which has been haunting the crypto market.

Anxiety about the extent of crypto friendliness likely by candidates in the U.S. Presidential race also weighed heavily on sentiment. Absence of decisive rate cut hints in the minutes of the Federal Open Markets Committee released on Wednesday also swayed crypto market sentiment.

Adding to the anxiety about interest rates is the scheduled release of the monthly jobs data from the U.S. on Friday morning. Sentiment remained nervous despite consensus estimates pointing to the unemployment rate remaining steady at 4 percent and additions to non-farm payrolls declining to 190 thousand from 272 thousand in May. The jobs data release assumes significance given the Fed speakers’ insistence on conclusive proof of disinflation before a rate cut by the Fed.

Data from Farside Investors that showed net outflows from Bitcoin Spot ETF products in the U.S. rising to $21 million on Wednesday from $14 million on Tuesday also dampened crypto market sentiment.

The Dollar’s retreat that came amidst lackluster Services PMI reading from the U.S. released on Wednesday morning however limited losses. The ISM services PMI recorded a lower-than-expected reading of 48.8. Markets had expected only a decline to 52.5 from 53.8 in the previous month.

Bitcoin plunged to a low of $53,717.38 in the past 24 hours. It is currently trading at $54,064.76 recording overnight losses of 6.2 percent and weekly losses of 11.9 that has curtailed year-to-date gains to just 28 percent. At its current price, the leading cryptocurrency is trading 27 percent below the all-time high recorded in March 2024.

Ethereum tumbled close to 10 percent in the past 24 hours to trade at $2,850.42, around 42 percent below the all-time high. Amidst weekly losses of more than 17 percent, the leading altcoin’s year-to-date gains have reduced sharply to less than 25 percent. The broad-based market sell-off had dragged the altcoin to a low of $2,839.82 earlier in the trade.

Bitcoin dominates 54.2 percent of the overall crypto market followed by Ethereum that has a 17.4-percent market share. With market cap steady at $163 billion, the share of stablecoins has jumped to 8.36 percent of the overall crypto market.

4th ranked BNB (BNB) dropped 13.3 percent overnight and 20 percent on a weekly basis to trade at $458.53.

5th ranked Solana (SOL) slipped 9.1 percent overnight and more than 15 percent in the past 7 days. SOL is currently trading at $122.86.

7th ranked XRP (XRP) slipped 11.4 percent overnight and 16.2 percent in the past week to trade at $0.4004. Year-to-date losses have crossed 36 percent.

8th ranked Toncoin (TON) declined 9.8 percent overnight to trade at $6.54. TON tops year-to-date gains among the top-100 cryptocurrencies with an addition of 183 percent.

Dogecoin (DOGE), ranked 9th overall has also plunged 15.6 percent in the past 24 hours to trade at $0.09425. Meme category market capitalization has also declined more than 15 percent in the past 24 hours.

10th ranked Cardano (ADA) declined 17.5 percent overnight and 15.8 percent over the past week. ADA is currently trading at $0.3248.

91st ranked Tether Gold (XAUt) topped overnight gains among the top-100 cryptocurrencies with a gain of 0.34 percent. Despite the bloodbath in crypto sphere, market capitalization of the Tokenized gold category recorded an uptick of 0.10 percent.

70th ranked Core (CORE) topped overnight losses among the top-100 cryptocurrencies with a decline of 21.6 percent. 77th ranked Starknet (STRK) and 94th ranked ORDI (ORDI) also shed more than 20 percent in the past 24 hours.

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RTT Staff Writer
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