Bitcoin
Bitcoin (BTC) Drops to Lowest Level Since February as Mt. Gox Moves $2.6 Billion in BTC
Bitcoins (BTC) fell for a fourth day as defunct exchange Mt. Gox moved a considerable amount of BTC to a new wallet, potentially preparing for creditor payments.
The top cryptocurrency by market cap fell more than 4% to $53,600, its lowest since Feb. 26, according to data from charting platform TradingView and CoinDesk.
At 00:27 UTC, Mt. Gox transferred 47,228 BTC ($2.6 billion) from cold storage to a new wallet, according to blockchain analytics firm Arkham Intelligence. The exchange is set to begin distributing assets stolen from customers in a 2014 hack.
The impending repayments, which include 140,000 BTC ($7.73 billion), 143,000 BCH, and the Japanese yen, were announced last month. Since then, traders have been worried that creditors who have been patiently waiting for repayments for a decade will immediately sell upon receiving coins, creating mass selling pressure in the market. Note that BTC was trading at around $600 when the exchange was hacked in 2014, and today it is worth over $55,000.
Several analysts recently tried to calm his nerves saying that potential selling pressure from refunds would be limited, but to no avail. BTC has fallen 10% in seven days and 22% in four weeks.
The intense sell-off has turned the horizontal support at $56,500, stemming from the May lows, into resistance. Furthermore, the bears have established a foothold below the crucial 200-day SMA and the bullish trendline.