Bitcoin Cash

<h4><strong>Today, the crypto market experienced a significant downturn, driven by several factors.</strong></h4> 
<p>This includes the start of Mt. Gox repayments and massive liquidations across major cryptos. Additionally, Bitcoin miners are facing substantial losses due to the recent price drop. Let’s discover more about what is going on in this crypto market.</p> 
<h5><strong>What Caused the Market Dip?</strong></h5> 
<h6><strong>1. Mt. Gox Repayments</strong></h6> 
<p>The long-awaited Mt. Gox repayments have begun, and this has had a substantial impact on the market. <a href="https://www.altcoinbuzz.io/?s=Mt.+Gox" target="_blank" rel="noopener">Mt. Gox</a> was once the largest Bitcoin exchange, handling over 70% of all crypto volume worldwide before its collapse in 2014. After years of legal battles and delays, the repayment of creditors in Bitcoin and Bitcoin Cash has finally started.</p> 
<p>This process has introduced a significant amount of Bitcoin and Bitcoin Cash back into the market. Many creditors, having waited for years to recoup their losses, are likely opting to sell their newly received assets immediately.</p> 
<p><img decoding="async" class="wp-image-144839 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/vcxfgfhgh-267x300.jpg" alt="" width="498" height="560" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/vcxfgfhgh-267x300.jpg 267w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/vcxfgfhgh-374x420.jpg 374w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/vcxfgfhgh.jpg 391w" sizes="(max-width: 498px) 100vw, 498px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/ElonTrades/status/1808985789516427508" target="_blank" rel="noopener">X</a></strong></h6> 
<p>This sudden surge in supply has exerted considerable downward pressure on prices, as the market struggles to absorb the increased selling volume. Additionally, the anticipation of these repayments had already created a sense of uncertainty and volatility in the market, which has now been realized as the repayments commence.</p> 
<p>The sheer volume of assets being released, combined with the psychological impact on market participants, has contributed to a sharp decline in prices.</p> 
<h6><strong>2. Massive Liquidations</strong></h6> 
<p>Alongside the Mt. Gox repayments, the market has seen a wave of liquidations, further worsening the downturn. As <a href="https://www.altcoinbuzz.io/?s=bitcoin" target="_blank" rel="noopener">Bitcoin</a> fell by approximately 8%, it triggered a cascade of liquidations, amounting to around $580 million.</p> 
<p>Liquidations occur when leveraged positions are forcibly closed by exchanges due to margin calls. When prices drop significantly, leveraged positions can quickly become untenable, leading to forced sell-offs to cover losses.</p> 
<p><img decoding="async" class="wp-image-144845 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/vcxdsdffrtryythj-265x300.jpg" alt="" width="494" height="559" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/vcxdsdffrtryythj-265x300.jpg 265w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/vcxdsdffrtryythj-371x420.jpg 371w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/vcxdsdffrtryythj.jpg 391w" sizes="(max-width: 494px) 100vw, 494px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/CryptoDiffer/status/1809173548843270152" target="_blank" rel="noopener">X</a></strong></h6> 
<p>This creates a vicious cycle where falling prices trigger more liquidations, driving prices down further. This chain reaction of selling has contributed to the overall negative sentiment and heightened market volatility.</p> 
<h3 id="strong-3-miners-in-trouble-strong"><strong>3. Miners in Trouble</strong></h3> 
<p>The recent price plunge to $54,000 has had a significant impact on Bitcoin miners, pushing many into a loss-making territory. According to <a href="https://www.f2pool.com/" target="_blank" rel="noopener">F2Pool</a>, one of the largest Bitcoin mining pools, only five mining rigs remain profitable at current prices.</p> 
<p><img decoding="async" class="wp-image-144847 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xcvdsfseerdgghgth-168x300.jpg" alt="" width="439" height="784" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xcvdsfseerdgghgth-168x300.jpg 168w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xcvdsfseerdgghgth-235x420.jpg 235w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xcvdsfseerdgghgth.jpg 296w" sizes="(max-width: 439px) 100vw, 439px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/f2pool_official/status/1808821272014713257" target="_blank" rel="noopener">X</a></strong></h6> 
<p>Mining profitability is closely tied to <a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank" rel="noopener">Bitcoin’s price</a> and the cost of electricity. When Bitcoin prices fall, the revenue miners earn from block rewards and transaction fees decreases while their operational costs remain relatively constant.</p> 
<p>This imbalance can make mining unprofitable, forcing miners to shut down their rigs or sell their mined Bitcoin to cover expenses. The drop in profitability has led to increased selling pressure from miners, as they liquidate their holdings to stay afloat.</p>  
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/whats-happening-in-the-crypto-market/">What’s Happening in the Crypto Market?</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

What’s Happening in the Crypto Market?

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