Markets
Bitcoin Falls Below $58,000 as Mt. Gox Selling Pressure Increases
- Bitcoin fell below $58,000 on Thursday, hitting its lowest level since May.
- The drop puts bitcoin below its 200-day moving average, which could signal a slowdown, said Alex Kuptsikevich of FXPro.
- Investors dump token as fears of selling pressure from Mt. Gox grow.
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Bitcoin The cryptocurrency price hit a two-month low on Thursday, with the world’s largest cryptocurrency slipping below $58,000 for the first time since May.
The Apex token fell 3.5% on the day, at one point reaching as low as $56,882. The fallout extends a three-day slide, as concerns grow over impending selling pressure in the market.
The decline has now dragged bitcoin below its 200-day moving average, noted Alex Kuptsikevich, senior market analyst at FXPro.
This measure is used to determine the direction a market is heading: consistent trading below the gauge usually suggests a slowdown.
“From the current position, a 12% decline to $51,500 (February consolidation zone) is more likely than a similar increase to $65,800,” he wrote Thursday morning. This higher forecast is based on bitcoin’s 50-day moving average.
Just three days into the month, bitcoin has already suffered an 8.6% drop. The selloff is driven by growing concerns over payments from Mt. Gox, a cryptocurrency exchange that has been declared bankrupt nearly a decade ago.
The planned payouts are to reimburse customers who were victims of a 2014 hack and will be paid in bitcoin or bitcoin cash. But it heightens fears of selling pressure as customers may choose to cash out their tokens to make big gains.
According to Search K33Concern has been weighing on the price of bitcoin in recent days.
Other crypto tokens, such as ether and Solana are following bitcoin lower. In fact, the sector’s market cap fell to its lowest level in February on Thursday, dropping below $2.17 trillion, Kuptsikevich wrote.
Optimistic analysts, however, remain confident that bitcoin will make a comeback this year.
On Monday, Fundstrat’s Tom Lee projected that the cryptocurrency would hit $150,000 by the end of the year, once the Passes overlooking Mount Gox.
Others, like Galaxy CEO Michael Novogratz, had warned months earlier that a correction in bitcoin would occur before it could continue to climb. Speaking in February, he suggested a $50,000 floor.
Yet bitcoin is up more than 38% year-to-date, after a massive bull run The token hit a record high of $73,798. The launch of Bitcoin spot ETFs in January triggered this surge.