Bitcoin drops below $54,000 as crypto liquidations approach $665 million

Update July 5, 04:30 UTC: This article has been updated after Bitcoin price dropped below $54,000. New information and figures have been added.

Bitcoin hit a four-month low of $53,499 on Coinbase as news of the latest cold wallet transfer from Mt. Gox hit the markets.

Bitcoin (BTC) plummeted around 4:19 a.m. UTC on July 5, hitting its lowest level since late February, according to TradingView. Additionally, cryptocurrency liquidations surged to $664.5 million over the past 24 hours, the highest in two months, according to data from CoinGlass.

Bitcoin has recovered slightly to $54,300, down about 7.4% in the past 24 hours.

Other widely traded cryptocurrencies, including ether (ETH) and Solana (SOL), also saw nearly 10% drops on the day. ETH fell to $2,898, below the key $3,000 level it has held since mid-May, according to Cointelegraph Markets Pro.

Crypto liquidations over the past 24 hours included $584 million in long positions and nearly $82 million in shorts, with BTC long positions accounting for $222 million of the total.

ETH longs were the second most liquidated position at nearly $163 million. Source: CoinGlass

Positive sentiment towards crypto has also reached its lowest point since January 2023. The Crypto Fear and Greed Index showed a score of 29 out of 100 on July 5, showing that the market is experiencing “fear.”

Related: Bitcoin traders express optimism even as BTC price targets move lower

Traders are fearful of potential selling pressure expected to come from $8.5 billion in repayments to Bitcoin creditors by collapsed cryptocurrency exchange Mt. Gox.

On July 5, the exchange transferred 47,229 BTC, worth about $2.6 billion, to a new address, marking the first major move since May.

The German government has ramped up the pressure by selling 7,583 BTC worth $419.5 million since June 19. The company still holds 42,274 BTC, worth about $2.3 billion.

On July 4, Markus Thielen, an analyst at 10x Research, said he expects Bitcoin to drop as low as $50,000 due to selling pressure on the cryptocurrency.

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