NVDA - Bitcoin Ethereum Dogecoin Bleed On Mt. Gox's Repayment Scare: Analyst Underpins $62.5K As Key Level For King Crypto For Things To 'Look Much Better' | Benzinga
It turned out to be a sell-the-news event for the cryptocurrency market on Monday as Mt. Gox's July repayment plan sent investors into panic.
What Happened: Bitcoin plunged below $60,000 to hit its lowest level since early May. The dump was precipitated by defunct cryptocurrency exchange Mt. Gox's repayment obligation to its creditors, threatening to flood the market with $9 billion in additional Bitcoins.
Ethereum extended its downturn as well. Since the beginning of the month, the second-largest cryptocurrency has shed 12% of its gains made from the approval of spot ETFs.
About $363 million in open positions was liquidated from the market in the last 24 hours, the highest since June 7. Nearly $300 million in long bets was wiped out.
The slump shook the derivatives market, as the Open Interest In Bitcoin futures tumbled 3.65%. Some experts interpret this scenario positively, as it cools off an overleveraged market and paves the way for an uptrend once longs close their positions.
The ...