Bitcoin
falls to $55K as Mt Gox jitters rock cryptocurrencies By Investing.com
Investing.com– Bitcoin’s price fell on Monday amid lingering concerns over distributions from defunct cryptocurrency exchange Mt Gox, which also hurt sentiment toward broader cryptocurrency markets.
Still, the world’s largest cryptocurrency found some support around the $55,000 level after falling to more than four-month lows earlier on Monday. It was down 3.8% over the past 24 hours to $55,450.3 as of 01:25 ET (05:25 GMT).
The token and the broader crypto space received little support from a weaker dollar, with reports suggesting that major Bitcoin wallet holders have also begun mobilizing their wallets for potential sales.
Bitcoin takes a hit as Mt Gox distribution begins
Administrators of now-defunct cryptocurrency exchange Mt Gox said they began distributing tokens to customers affected by a hack in 2014.
While administrators did not disclose the amount of the distributions, wallets associated with the exchange moved around $9 billion worth of Bitcoin earlier this year.
Traders have dumped Bitcoin out of fear that token holders will be largely encouraged to sell their holdings given Bitcoin’s massive price jump over the past decade. Such a scenario presents massive selling pressure on the token.
Several Bitcoin whale wallets have been seen coming online for potential sales of their holdings, while flows into cryptocurrency investment products have also been seen largely drying up in recent weeks.
Cryptocurrency Price Today: Altcoins Track Bitcoin Losses, Rate Signals in Focus
Among the broader cryptocurrency markets, major altcoins have largely followed Bitcoin’s sharp price decline.
The world’s No. 2 token fell 4.1% to $2,906.21. The token fell below $3,000 for the first time since May.
and fell between 4% and 7%, while meme tokens and lost 6.6% and 4.6%, respectively.
Bitcoin’s selling pressure has spread to major altcoins as the token often acts as a figurehead for the cryptocurrency industry.
As such, cryptocurrency prices have largely shrugged off recent weakness in the , amid growing optimism over interest rate cuts by the Federal Reserve. This trend has seen Wall Street hit record highs.
is set to offer more interest rate insights this week. Important U.S. inflation data is also forthcoming.