Crypto Market Cap Plunges to $2.44 Trillion as Mt. Gox Bitcoin Transfer Sparks Market Jitters

• Crypto market capitalization reaches a low of $2.44 trillion on Tuesday, levels not seen since early November.
• The recent price correction triggered a wave of liquidations worth over $937 million in the last 24 hours.
• Defunct crypto exchange Mt. Gox raises concern in the market as it moves 11,833 BTC worth $932 million. 

The cryptocurrency market is experiencing a significant downturn, with its total market capitalization plummeting to $2.44 trillion on Tuesday. This marks the lowest level since early November, erasing months of gains and triggering a substantial wave of liquidations across the market.

According to market data, the crypto market cap began its descent from $2.72 trillion on Monday, reaching the $2.44 trillion mark on Tuesday. This sharp correction has resulted in over $937 million in liquidations within the last 24 hours, with the largest single liquidation order occurring on Binance for a BTC/USDT trade valued at $5.26 million.

Adding to the market’s woes, the defunct cryptocurrency exchange Mt. Gox has once again become a focal point of concern. Data from Lookonchain reveals that Mt. Gox moved a substantial 11,833.6 Bitcoin (BTC), valued at over $932 million, on Tuesday. This transfer follows a similar movement last week where 12,000 BTC, worth over $1 billion, was shifted.

In the latest transaction, Mt. Gox sent 11,501.58 BTC ($905.06 million) to a new, unidentified wallet, while 332 BTC ($26.13 million) was moved to a known “warm wallet.”

Market analysts suggest that these large Bitcoin transfers from Mt. Gox are generating unease within the crypto community. The movement of such significant amounts of Bitcoin to wallets is often interpreted as a precursor to selling or distribution. This anticipation of increased Bitcoin supply entering the market can fuel bearish sentiment and potentially exacerbate the ongoing price correction.

Traders are advised to exercise caution amidst this market volatility and the uncertainty surrounding Mt. Gox’s Bitcoin holdings. The coming days will be crucial in determining if the market can stabilize or if further downward pressure is on the horizon.