Markets
Bitcoin Price Drops Sharply on Mt. Gox Payouts, Government Sales
- Bitcoin has fallen 8% over the past two days due to selling by Mt. Gox Bitcoin recipients and government wallets.
- Bankrupt Mt. Gox still holds about 140,000 bitcoins and has begun paying back its creditors and former customers.
- The negative price movement of Bitcoin since the beginning of July has broken several technical support levels.
Thanks for checking in!
Access your favorite topics in a personalized feed on the go. Download the app
By clicking “Register”, you agree to our Terms of use And Privacy PolicyYou can unsubscribe at any time by visiting our Preferences page or by clicking “unsubscribe” at the bottom of the email.
Bitcoin has fallen 8% in the past two days, is down 12% since the start of July and is trading at its lowest level since February.
The sharp drop was accompanied by a wave of selling by major bitcoin holders, including the now-defunct cryptocurrency exchange Mt. Gox and the German and U.S. governments.
Mt. Gox, which was at one point the largest cryptocurrency exchange, went bankrupt in February 2014 after A series of hacks stole nearly a million bitcoins from its customers.
A decade later, Mt. Gox on Friday began repaying some of the $9 billion it owes to creditors and customers via Bitcoin and Bitcoin Cash, according to a company statement.
Cryptocurrency wallets linked to Mt. Gox show that the defunct exchange still holds nearly 140,000 bitcoins that have yet to be repaid, according to data provider Arkham Intelligence.
At the same time, recent bitcoin transfers from wallets associated with the German and US governments suggest that both countries are liquidating some of their bitcoin reserves.
Arkham Intelligence said the German government sold up to $175 million in bitcoins seized Thursday. The government still holds about 40,000 bitcoins worth more than $2 billion.
According to at Blockworks, The US and German governments have sent a total of $738 million to Bitcoin exchanges over the past two weeks, suggesting they will be sold off soon.
All this selling pressure sent the price of bitcoin below key technical support levels.
Bitcoin is is trading below its 200-day moving average around $59,500, suggesting further decline ahead.
Cable Guide Strategies pointed out that $60,000 was a key support level that has since been broken. The decisive break places bitcoin’s next target support level at around $51,500.