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Bitcoin Nosedives Under $58K Amid Mt. Gox, German Government Wallet Movements
A wallet belonging to a German official entity moved its largest stash of BTC to exchanges earlier today, while Mt. Gox wallets showed activity for the first time in a month.
Updated Jul 4, 2024, 10:34 a.m. Published Jul 4, 2024, 10:34 a.m.
- Bitcoin dropped under $58,000 for the first time since May, marking a 5% loss in 24 hours.
- Mt. Gox wallets, dormant for a month, showed activity with test transactions, hinting at potential asset distributions and increased selling pressure.
Bitcoin plunged under $58,000 in European morning hours, extending 24-hour losses to nearly 5% and dropping to prices not seen since early May.
The sell-off came as wallets belonging to defunct crypto exchange Mt. Gox showed signs of activity for the first time in a month and the German Federal Criminal Police Office moved over $75 million to crypto exchanges.
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“Among the top reasons for the price drop was the German government moving more than $50 million to crypto exchanges, creating sell speculation in the market,” Lucy Hu, a senior analyst at crypto investment firm Metalpha, said in a Telegram message.
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Mt. Gox is scheduled to start distributing assets stolen from clients in a 2014 hack this month, although it is unclear when, after years of postponed deadlines. The repayments will be made in bitcoin and bitcoin cash and could add selling pressure to both markets, as previously reported.
Wallets tracked by Arkham show Mt. Gox wallets conducted test transactions in during the Asian morning, moving a total of $25 worth of bitcoin across three transactions to different wallets.
Entities holding large amounts of tokens are known to move insignificant amounts between wallets before larger transfers – which may indicate an intention to sell.
Arkham data also showed the German entity moved $175 million in BTC to various wallets, $75 million of which was sent to crypto exchanges Kraken and Coinbase. Arkham CEO Miguel More previously told CoinDesk that transfers from a wallet to an exchange may indicate an intent to sell tokens.
Meanwhile, bitcoin has now fallen below a widely followed technical indicator for the first time since October, signaling a possible downtrend in the months ahead.
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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What to know:
- Ethena's USDe becomes fifth stablecoin to surpass $10 billion market cap in just 609 days, while Tether's dominance continues to slip.
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