Bitcoin dropped below $57K for the first time since May, marking more than a 5% loss in a single day. Mt. Gox wallets started moving with test transactions after being inactive for a month, increasing the likelihood of asset distributions and escalating selling pressure.

The sell-off happened at the same time that the German Federal Criminal Police Office transferred over $75 million to cryptocurrency exchanges and that activity began to appear in the wallets of the now-closed Mt. Gox cryptocurrency exchange for the first time in a month.

In the past 24 hours, 131,631 traders were liquidated, totaling $372.75 million in liquidation value. For ETHUSDT, the highest liquidation order was made on Binance, valued at $18.48 million.

The crypto market valuation fell to $2.09 trillion, down 6.07% from the previous day. $90.34 billion has been traded on the cryptocurrency market in the last 24 hours, a 34.44% gain.

The founder of Tron, Justin Sun, made a bid to purchase the German government’s more than $2.3 billion worth of Bitcoin assets. The well-known cryptocurrency pioneer planned to lessen the negative impact by buying BTC off-market,” Sun wrote in a July 4 X post to his 3.5 million followers, announcing the offer.

Concerns regarding potential Bitcoin sales were raised on June 19 after 6,500 Bitcoins worth more than $425 million were transferred via a wallet connected to the German government.
Since market selling of the remaining holdings may harm the price of Bitcoin, traders were discussing the wallet a lot.

Before the first transfer, the wallet contained roughly 50,000 BTC since February 2024. The financing source is believed to have been Movie2k, the proprietor of the pirate movie website.