$170 Billion Selloff in Cryptocurrencies Friday as Mt. Gox Payout Looms

At one point on Friday the entire cryptocurrency market shed more than $170 billion in capitalization within 24 hours, CNBC reported (citing data from CoinGecko). "Cryptocurrencies plunged... as investors focused on the payout of nearly $9 billion to users of collapsed bitcoin exchange Mt. Gox."This dumping of coins onto the market is expected to lead to some significant selling action. The slump in crypto prices led to hefty liquidations in the derivatives markets, according to crypto data firm Coinglass, which suggests that 229,755 traders had their positions worth a combined $639.58 million liquidated [within 24 hours]. Of this sum, $540.46 million represented long trades - financial positions taken when an investor expects the price of an asset to appreciate over the long term. Also pressuring crypto markets, the German government on Thursday sold roughly 3,000 bitcoins - worth approximately $175 million as of today's prices - from a 50,000-bitcoin pile seized in connection with the movie piracy operation Movie2k, according to Arkham Intelligence.... Tom Lee, co-founder and head of research at Fundstrat Global Advisors, told CNBC's "Squawk Box" on Monday that he still sees bitcoin hitting $150,000 despite the "overhang" from Mt. Gox's upcoming disbursement of tokens to creditors. Wired focuses on how "After a 10-Year Wait, Mt. Gox Bitcoin Is Finally Being Returned":In a highly atypical turn of events, Mt. Gox customers actually stand to profit financially from their involvement in the bankruptcy. Because only a limited amount of bitcoin was recovered, customers will receive only roughly 15 percent of the bitcoin they held on the exchange. However, the hundredfold increase in price in the intervening period means the dollar-value of the coins will far exceed the worth of their original pile.

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