Markets
Crypto Markets Fall Amid Mt. Gox Jitters
Wallets linked to the defunct cryptocurrency exchange moved $9 billion into Bitcoin on May 28.
Cryptocurrency markets tumbled on Tuesday amid fears of a potential sell-off coming from Mt. Gox.
On May 28, wallets linked to the defunct exchange moved nearly $9 billion worth of Bitcoin to unknown wallets.
Mt. Gox, once the largest Bitcoin exchange in the world, collapsed in 2014 after a massive 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 cryptocurrency history.
Markets sold off as investors anticipated the possible liquidation of these holdings.
According to the data, Bitcoin is down 3%, with Ether and Solana down more than 2%. CoinGecko.
“The movement in Mt. Gox 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 prompted traders to reevaluate their positions, contributing to the current market downturn.”
Michael Van de Poppe, CEO of MN Trading, believes that the market today is “pretty boring”. “There was no breakout for Bitcoin as the $70,000 was rejected,” he said She said. “I would like $66,000 to hold as support, and then everything will be fine.”
Data from CoinGlass Shows the growing popularity of memecoins among leveraged traders. Notably, four of the top 10 cryptocurrencies by open interest (OI) are now memecoins. Leading the pack is Pepe (PEPE), with $820.5 million in OI. Other memecoins in the top 10 include Dogecoin (DOGE), Dogwifhat (WIF), and Bonk (BONK).
US stock markets are stagnating after the long weekend. The S&P 500 and Dow fell 0.2%, while the Nasdaq rallied 0.1%.