In a surprising turn of events, Bitcoin’s value plunged to a four-month nadir, reaching $53,499 on Coinbase, triggered by the latest developments from Mt. Gox’s cold wallet activities. The descent began around 4:19 am UTC on July 5, marking the lowest valuation since the end of February, as per data from TradingView. The cryptocurrency market witnessed a spike in liquidations, amounting to $664.5 million within a 24-hour window, the most substantial in two months, according to CoinGlass.
Despite the downturn, Bitcoin managed a modest rebound to $54,300, though it still represents a 7.4% decrease over the past day. Other prominent digital currencies, such as Ether (ETH) and Solana (SOL), experienced similar declines, nearly 10% within the same timeframe. Ether’s value fell to $2,898.20, slipping below the pivotal $3,000 mark, a support level maintained since mid-May, as reported by Cointelegraph Markets Pro.
The recent liquidation storm saw $584 million in long positions and close to $82 million in shorts evaporate, with Bitcoin longs constituting $222 million of the aggregate losses. 
Ether long positions followed, with nearly $163 million wiped out, as noted by CoinGlass.
Market sentiment towards cryptocurrencies has also dipped to its lowest since January 2023. The Crypto Fear & Greed Index on July 5 indicated a score of 29 out of 100, signaling a market gripped by fear.
Amidst this backdrop, Bitcoin traders remain cautiously optimistic, even as the price projections for BTC adjust downwards. The potential sell-off pressure looming from an estimated $8.5 billion in Bitcoin creditor repayments by the defunct cryptocurrency exchange Mt. Gox has rattled traders. On July 5, the exchange moved 47,229 BTC, valued at approximately $2.6 billion, to a new address, marking its first significant transaction since May.
Adding to the selling pressure on Bitcoin, the German government has liquidated 7,583 BTC, worth about $419.5 million, since June 19. However, it retains possession of 42,274 BTC, currently valued at around $2.3 billion.
Markus Thielen, an analyst at 10x Research, speculated on July 4 that Bitcoin could potentially drop to $50,000 due to the ongoing selling pressure on the digital currency.
In related news, Ethereum’s recent downturn might present an unexpected opportunity, as suggested by Dynamo DeFi’s “Hall of Flame.” The article’s content has been updated to reflect the latest figures and information following Bitcoin’s dip below $54,000 as of July 5, 4:30 am UTC.