Bitcoin the primary crypto asset has dropped further in price hitting below $54,000 its lowest price level since late February and breaking another key support.
The flagship crypto asset is reacting to defunct crypto exchange Mt.Gox moving over $2.6 billion worth of BTC to a new address in preparation for its long-awaited redistribution of BTC assets to creditors.
Mt. Gox moved the staggering worth of BTC to a new address from cold storage early Friday morning triggering the Bitcoin price slump.
Bitcoin dropped for a fourth consecutive day following the activity of defunct crypto exchange Mt. Gox which serves as a crypto whale due to the large amount of Bitcoin in its possession.
Bitcoin market value dropped by over 4% to $53,600 its lowest level since February 26th according to data from Trading View and CoinDesk.
In the early hours of Friday morning, Mt. Gox transferred 47,228 BTC ($2.6 billion) from cold storage to a new wallet according to Blockchain analytics firm Arkham’s intelligence which picked up the transaction.
The Analytics firm took to X to share its findings with its over 458,000 followers.
“BREAKING Mt Gox moves 47,228 BTC ($2.71 billion) from cold storage to a new wallet.” Arkham Intelligence tweeted.
The Now-defunct exchange is expected to start distributing crypto assets stolen from clients in a 2014 hack and this is expected to flood the market with BTC further driving down its price and value.
Mt. Gox last month announced its outstanding repayment which includes 140,000 BTC ($7.73 billion), 143,000 BCH, and the Japanese yen. Crypto traders and market watchers have been worried since then that creditors who will receive these assets from Mt. Gox will immediately sell off their assets upon receiving them creating massive selling pressure in the market.
It is to be noted that BTC was trading at $600 when the exchange was hacked back in 2014 now the asset is going for $55,000 as per CoinGecko data.
Analysts have tried to calm worried traders in the industry by saying the expected selling pressure from the Mt. Gox debacle will be limited but this hasn’t worked.
Bitcoin has declined 10% in seven days and 22% in 4 weeks as the asset continues to react to selling pressure.
On the charts, the intense sell-off has turned the horizontal support level of $56,500 from last month’s lows into a resistance at the moment.
The steep decline of Bitcoin over the days has also affected other crypto assets that are currently in the red at the time of the report.
What to Know
- Other factors creating selling pressure for Bitcoin include the Onchain activities of German government-linked wallets that have been selling off millions worth of Bitcoin repeatedly.
- The German government seized a staggering stash of Bitcoin assets worth billions from Movie 2k a now-defunct movie Piracy site and its actions of recent shows that it plans to sell off the entire assets to the dismay of the crypto community.
- Tron Founder Justin Sun has offered to buy the rest of the seized Bitcoin assets from the German government.
