July 14, 2024

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Bitcoin (BTC) Hits Lowest Level Since February as Mt. Gox Moves $2.6 Billion in BTC

Bitcoin (BTC) Hits Lowest Level Since February as Mt. Gox Moves .6 Billion in BTC

Bitcoin (BTC) The selloff continued during Asian trading hours on Friday as the defunct Mt. Gox exchange moved large amounts of bitcoin to a new wallet, in preparation for paying off its debts.

The leading cryptocurrency by market cap fell more than 4% to $53,600, hitting its lowest level since Feb. 26, according to charting platform TradingView and CoinDesk.

At 00:27 UTC, Mt. Gox moved 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 redemption, which includes 140,000 bitcoins ($7.73 billion), 143,000 bitcoin cash and the Japanese yen, was announced last month. Since then, traders have been worried that creditors who have been patiently waiting for a decade to be repaid will immediately sell the coins upon receipt, creating a sell-off in the market. Note that bitcoin was trading at around $600 when the exchange was hacked in 2014; today, it is worth more than $55,000.

Several analysts have recently tried to calm nerves by saying that potential selling pressure from the redemptions will be limited, but to no avail. Bitcoin has fallen 10% in seven days and 22% in four weeks.

The heavy selling has turned the horizontal support at $56,500 from the May lows into resistance. Moreover, the bears have established a foothold below the 200-day simple moving average and the bullish market trend line.

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