Market Cap and BTC Tumble After Mt. Gox’s $5 Billion Move
The recent news of Mt. Gox’s $5 billion Bitcoin transfer has caused a stir in the crypto market, leading to a downward trend in both the total crypto market cap and Bitcoin’s price. This has also had an impact on altcoins, with Lido DAO experiencing a significant drop in value. Here’s what you need to know:
- Mt. Gox, a prominent crypto exchange that went bankrupt ten years ago, made its first transaction in five years by moving around 75,000 BTC, worth $5 billion, to new addresses.
- According to a report by Kaiko Research, the Grayscale Ethereum Trust (ETHE) could see daily outflows of $110 million, following in the footsteps of its Bitcoin counterpart GBTC.
Mt. Gox’s Ripple Effect on the Crypto Market
The news of Mt. Gox’s massive Bitcoin transfer has triggered a bearish sentiment among investors, leading to a decline in the total crypto market cap by $45 billion. Despite this, the market cap is still hovering around $2.48 trillion, near the crucial support level of $2.50 trillion. If the bearish trend continues, the market cap could drop further to $2.40 trillion.
Bitcoin Reacts to Mt. Gox’s Move
As Bitcoin was at the center of Mt. Gox’s $5 billion transfer, its price took a hit, dropping by over 2% and breaking below the $68,500 support level. Reclaiming this level as support is crucial for any potential recovery. Although a further decline to $66,000 is possible in bearish conditions, regaining the $68,500 support could bring back optimism for BTC.
Lido DAO Faces Resistance
After a significant price surge in the latter half of May, Lido DAO’s fortunes took a turn in the last 24 hours. Approaching the critical resistance level of $2.6, the market sentiment shifted from bullish to bearish, causing LDO to slide back to $2.4. To make another attempt to breach the resistance, investors and market participants need to push for it; otherwise, LDO could drop further to $2.2.
Hot Take: Keep an Eye on Market Movements
The recent events surrounding Mt. Gox’s $5 billion Bitcoin transfer have sent shockwaves across the crypto market, impacting both the total market cap and individual assets like Bitcoin and Lido DAO. It’s essential for crypto investors to monitor market movements closely, especially in light of such significant developments. Stay informed and be prepared for potential shifts in the market to make informed investment decisions.
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