Cryptocurrencies, including Bitcoin, experienced a significant sell-off, with Bitcoin's value falling nearly 24% in the past week, reaching its lowest level since February. This decline was attributed to the announcement of repayment plans by the defunct Mt. Gox, which involves using $2.71 billion in Bitcoin, leading to fears of potential liquidation and driving down the cost. The sell-off also affected other digital assets, with Ether losing nearly 5% and other top cryptocurrencies showing losses. The movement of 47,228 Bitcoin by Mt. Gox from a cold wallet to a new wallet, possibly in preparation for payouts to its creditors, precipitated the sell-offs and forced the largest wave of liquidations since mid-April. This resulted in $541.45 million in future contracts being wiped out in the last 24 hours, with long liquidations accounting for $472 million. Bitcoin's Open Interest plunged 7% in the last 24 hours, and cryptocurrency-related stocks, including Coinbase, MicroStrategy, and Robinhood, were dropping early on Friday as Bitcoin's price continued to fall. The decline in Bitcoin's value to $57,000 is seen as potentially signaling further trouble, with potential support only at $51,000, according to a crypto analyst. The second-largest cryptocurrency, Ethereum, also crashed to a six-week low, erasing all the gains made since the hype of spot ETF approvals in mid-May. Overall, the sell-off in the cryptocurrency market was fueled by concerns over potential selling following Mt. Gox's repayment plans and the movement of a significant amount of Bitcoin, leading to widespread losses across various digital assets and a notable impact on the broader cryptocurrency market.
