On Monday, the Mt. Gox trustee announced that it will start repaying creditors next week, a move that could introduce more selling pressure and destabilize the market further.
The unfolding of the Mt. Gox saga, a decade-long overhang on the cryptocurrency market, is a critical development as the exchange begins repaying its creditors with over US$9.4 billion in Bitcoin owed to around 127,000 creditors.
The distribution of such a substantial amount could lead to increased market volatility.
Additionally, the recent sale of US$325 million worth of Bitcoin by German authorities, part of nearly US$3 billion in their possession, adds to the current selling pressure.
Data from CoinGlass shows that over US$335 million were liquidated in the 24 hours leading up to 1:30 p.m. ET.
Of that total, almost US$300 million came from long positions.