Bitcoin Hammered as Mt Gox Distribution Begins

Trustees for the now defunct Mt Gox crypto exchange said they had begun distributing tokens to clients affected by a 2014 hack.

Bitcoin price fell on Monday as persistent concerns over distributions by now defunct crypto exchange Mt Gox battered sentiment towards broader cryptocurrency markets.

Still, the world’s largest cryptocurrency found some support around the $55,000 level after sinking to over four-month lows earlier on Monday. Bitcoin fell 3.8% in the past 24 hours to $55,450.3 by 01:25 ET (05:25 GMT).

The token and the broader crypto space took little support from a weaker dollar, with reports also suggesting that major Bitcoin wallet holders had begun mobilizing their wallets for potential sales.

Bitcoin hammered as Mt Gox distribution begins

Trustees for the now defunct Mt Gox crypto exchange said they had begun distributing tokens to clients affected by a 2014 hack.

While the trustees have not outlined the value of the distributions, wallets associated with the exchange were seen moving around $9 billion worth of Bitcoin earlier this year.

Traders dumped Bitcoin on fears that receivers of the tokens 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 were seen coming online for potential sales of their holdings, while inflows into crypto investment products were also seen largely drying up through the past few weeks.

Crypto price today: Altcoins track Bitcoin losses, rate signals in focus

Among broader crypto markets, major altcoins largely tracked Bitcoin’s steep price descent.

World no.2 token Ether sank 4.1% to $2,906.21. The token broke below $3,000 for the first time since May.

XRP, SOL and ADA slid between 4% and 7%, while meme tokens DOGE and SHIB lost 6.6% and 4.6%, respectively.

Selling pressure on Bitcoin spilled over into major altcoins, given that the token usually acts as a figurehead for the crypto industry.

As such, crypto prices largely disregarded recent weakness in the dollar, amid growing optimism over interest rate cuts by the Federal Reserve. This trend saw Wall Street hit record highs.

A testimony by Fed Chair Jerome Powell is set to offer more cues on interest rates this week. Key U.S. consumer price index inflation data is also on tap.