Bitcoin Hits Four-Month Low Amid Market Turbulence

Bitcoin, known as BTC in the crypto world, reached a significant milestone by plummeting to a four-month low of $55,011 on the Coinbase exchange. The trigger for this downturn was the recent transfer of Mt. Gox’s cold wallet funds, which sent shockwaves through the cryptocurrency markets.

On July 5 at 3:11 am UTC, BTC hit its lowest point on Coinbase since late February, as reported by TradingView. During this period, the crypto market experienced a surge in liquidations totaling a substantial $588 million within 24 hours.

Although there has been a slight recovery with BTC now trading above $55,239, it still reflects a 3% decline over the past day.

The downward trend was not limited to Bitcoin alone. Other major cryptocurrencies like Ether (ETH) and Solana (SOL) also witnessed significant drops of around 10% on the same day.

The collective liquidations in the crypto space amounted to a staggering $588 million, marking the highest figure in over two and a half months, according to data from CoinGlass.

Within the recent 24-hour period, liquidations comprised $510 million from long positions and nearly $79 million from shorts. Notably, long BTC positions accounted for $193.19 million of the total liquidations.

ETH long positions were the second most impacted, with liquidations totaling nearly $127 million, as reported by CoinGlass.

The general sentiment toward cryptocurrencies has taken a negative turn, hitting its lowest level since January 2023. This sentiment shift is reflected in the Crypto Fear & Greed Index, which recorded a score of 29 out of 100 on July 5, indicating a prevailing sense of 'Fear' in the market.

Despite the market challenges, Bitcoin traders remain hopeful, expressing optimism even as price targets for BTC are revised downwards.

This situation signals a significant development in the crypto landscape, and updates will be provided as more information becomes available.