Bitcoin Dips Below $54K Amid Liquidation Frenzy and Mt. Gox Moves

Bitcoin tumbled to a four-month low of $53,499 on July 5, sparking significant market activity with $222 million in long positions liquidated. The overall crypto liquidations surged to $665 million, the highest in two months. Contributing to the downturn were moves by Mt. Gox, transferring 47,229 BTC ($2.6 billion) and the German government selling 7,583 BTC. Major cryptocurrencies like Ether and Solana also saw nearly 10% drops. With fear gripping the market, Bitcoin’s price hovers around $54,300, down 7.4% in 24 hours. Analysts predict further declines amid mounting sell pressures.

German Government Moves $172M in Bitcoin, Potential Market Impact Looms

The German government recently transferred over 3,000 BTC worth $172 million, splitting the amount between three major crypto exchanges—Coinbase, Kraken, and Bitstamp—and an unknown wallet. This significant move, flagged by blockchain investigator PeckShieldAlert, adds to the mounting market pressure alongside upcoming Mt. Gox repayments and U.S. government BTC sales. The German government has been offloading its 50,000 BTC holdings gradually since February 2024, contributing to fears of increased sell pressure in the crypto market.

Hamilton Launches First-Ever Tokenized US Treasury Bonds on Bitcoin Layer-2s

Crypto startup Hamilton has introduced Hamilton U.S. T-Bills (HUST) on Bitcoin layer-2 blockchains Stacks, Core, and BoB. This groundbreaking move combines Bitcoin’s stability with the reliability of U.S. Treasury bonds, offering better yields than stablecoins. The first transaction took place on July 4, marking a historic step towards financial independence and exposure to emerging markets. Tokenized real-world assets are gaining traction in the Web3 economy, with Hamilton’s innovation paving the way for more secure and transparent financial instruments on the Bitcoin network.

Mt. Gox Moves $2.7B in Bitcoin Amid Creditor Repayments

Mt. Gox, the defunct Japanese crypto exchange, transferred 47,229 BTC ($2.7 billion) to a new wallet on July 5 as part of its creditor repayment plan. This significant move, the first since May, aligns with Mt. Gox’s schedule to repay $8.5 billion worth of Bitcoin to creditors. Concerns about a potential market sell-off arise, but analysts suggest the actual market impact might be closer to $4.5 billion. Bitcoin prices dipped following the transfer, trading at $57,226, down 6.9% for the week but up 35.6% year-to-date.

Court Victory for Crypto: BNB Sales Not Securities, Rules Federal Judge

In a landmark ruling, a federal court declared that cryptocurrency tokens, including Binance’s BNB, are not securities. Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia dismissed several SEC claims, highlighting that BNB purchasers in secondary market sales did not expect profits, a key criterion under the Howey test. This decision could influence other cases, like the SEC vs. Ripple lawsuit, and marks a significant win for Binance.US and the broader crypto industry, emphasizing that cryptocurrencies themselves are not investment contracts subject to SEC regulation. The next hearing in the Binance vs. SEC case is set for July 9.

Sources:

https://cointelegraph.com/news/bitcoin-falls-55k-crypto-market-liquidations-half-billion

https://cointelegraph.com/news/german-government-transfers-3000-btc-exchanges-wallet

https://cointelegraph.com/news/crypto-startup-tokenized-us-treasury-bonds-bitcoin-layer-2

https://cointelegraph.com/news/mt-gox-moves-billions-bitcoin-unknown-wallet-address

https://cointelegraph.com/news/crypto-court-ruling-bnb-binance-not-securities