There are two main factors behind this sudden decline: Mt., which was hacked in 2014 and is no longer operating. Concerns and potential miner sales as the Gox exchange begins distributing assets stolen from its customers in July 2024.

Mt. Gox’s hacking incident has taken its place as a black mark in the history of the cryptocurrency market. In this incident in 2014, billions of dollars worth of Bitcoin were stolen. After many years of postponed exact dates, the exchange will begin distributing stolen assets to its customers in bitcoin and bitcoin cash (BCH) in July 2024.

The concern that this distribution will increase the supply of a significant amount of Bitcoin and Bitcoin Cash to the market makes investors nervous. As mentioned in previous analyses, this could create selling pressure in both markets.

CoinGecko data reveals that the Bitcoin price has lost 3.3% in the last 24 hours. This selling wave started immediately after the opening of the Tokyo stock market. This decline in Bitcoin also created a domino effect on other leading cryptocurrencies. While Ether (ETH) lost 4% in value, the price of Solana’s SOL and popular meme coin Dogecoin (DOGE) fell by up to 8%.

Investors investing in Bitcoin and other cryptocurrencies often benefit from leveraged transactions. Leveraged trading allows the investor to trade larger amounts than his own capital. However, this situation also carries high risks. Because when the market moves negatively, investors may lose some or all of their collateral.

Liquidation data tracked by CoinGlass shows that investors betting on high prices have lost over $230 million in the last 24 hours. This data is especially concentrated in Bitcoin (BTC) and Ether (ETH) futures. While there was a long position liquidation of $60 million in futures transactions related to these two cryptocurrencies alone, a loss of at least $4 million was recorded in less liquid products such as DOGE, SOL, XRP and pepe coin (PEPE).

For investors taking long positions, these liquidations were at the highest level since the end of June. Cryptocurrency exchange Binance suffered the most liquidation among its competitors and lost over 110 million dollars.

Besides all these developments, trading firm QCP Capital said in a post on Telegram on Thursday that they are expecting a weak market for the next few months. “Due to supply uncertainty resulting from the Mt. Gox distribution, we expect a stable Q3 for BTC,” the company said.

Mt. Gox’s asset distribution, the general economic environment and geopolitical tensions are other factors that may affect the cryptocurrency market. Therefore, it is important for investors to inform themselves comprehensively and follow market movements closely. Implementation of long-term investment strategies and risk management techniques will be beneficial for investors in dealing with the volatility of the cryptocurrency market.

The recent drop in Bitcoin price, Mt. Gox’s asset allocation and potential miner sales. While these developments created selling pressure in the market, they also led to liquidations in leveraged transactions. Although the cryptocurrency market is generally in a downward trend, liquidation data indicates that price volatility may decrease in the short term.

However, in the coming period, Mt. Gox development, it is predicted that the general economic environment and geopolitical tensions may also affect it. Therefore, investors need to be cautious and follow market movements closely.