Furthermore, the formerly operational Mt. Gox platform has commenced the process of returning the eagerly awaited 140,000 Bitcoins to its creditors. This unfolding event has sparked conjecture regarding the extent to which the $8 billion in Bitcoin will be liquidated. Smaller cryptocurrencies such as XRP, Ethereum, and BNB have experienced notable declines in market value, largely influenced by their strong association with Bitcoin. For instance, on July 5, the daily correlation coefficient between XRP and Bitcoin stood at 0.94, nearing a perfect correlation of 1. This trend may stem from investors liquidating their alternative coin positions to offset losses incurred in the Bitcoin market.
