Markets
Crypto Markets Decline Amid Mount Gox Jitters
Wallets linked to the defunct crypto exchange moved $9 billion worth of Bitcoin on May 28.
Crypto markets fell on Tuesday amid fears of a potential sell-off emanating from Mt. Gox.
On May 28, wallets linked to the defunct exchange transferred nearly $9 billion worth of Bitcoin to unknown wallets.
Once the world’s largest Bitcoin exchange, Mt. Gox collapsed in 2014 after a massive hack resulted in the loss of thousands of BTC. The exchange filed for bankruptcy, leaving creditors to wait a decade for repayment. This event marked one of the most infamous failures in crypto history.
Markets sold off as investors anticipated the possible liquidation of these securities.
Bitcoin is down 3%, Ether and Solana down over 2%, according to CoinGecko.
“The movement of 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”. “No breakout occurred for Bitcoin as $70,000 was rejected,” he said. said. “I would like $66,000 to be kept as support, and then everything will be fine.”
Data from CoinGlass watch 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 trading flat after the long weekend. The S&P 500 and Dow Jones fell 0.2% while the Nasdaq rose 0.1%.