Blockchain
Bitcoin (BTC) Drops to Lowest Since February as Mt. Gox Moves $2.6 Billion in BTC
Bitcoin (BTC) slid for a fourth day as the Mt. Gox exchange moved a significant amount of BTC to a new wallet, potentially preparing for creditor repayments.
According to data from charting platform TradingView and CoinDesk, the leading cryptocurrency by market value fell more than 4% to $53,600, its lowest level since Feb. 26.
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 expected to begin distributing assets stolen from customers in a 2014 hack.
The upcoming refunds, which include 140,000 BTC ($7.73 billion), 143,000 BCH, and Japanese yen, were announced last month. Since then, traders have been concerned that lenders who have been patiently awaiting refunds for a decade will immediately sell upon receiving the coins, creating mass selling pressure in the market. Note that BTC was trading around $600 when the exchange was hacked in 2014 and is now worth over $55,000.
Several analysts have recently he tried to calm his nerves saying that the potential selling pressure from refunds would be limited, but to no avail. BTC is down 10% in seven days and 22% in four weeks.
The intense sell-off has turned the $56,500 horizontal support from the May lows into resistance. Furthermore, the bears have established a foothold below the crucial 200-day SMA and the bull market trendline.