Bitcoin price falls below 55,000 USD
This week, Bitcoin price fell below $55,000 for the first time since February as the Mt. Gox exchange began distributing owed funds, marking the end of a long wait since the collapse of Mt. Gox in 2014.
Repayment to creditors
Mt. Gox has announced that it has begun repaying creditors, paying out a total of approximately $9 billion in Bitcoin, Bitcoin Cash and fiat currency. This has put significant selling pressure on the market, causing Bitcoin to fall by over 6 percent.
Cold Storage Transfer and Concerns
On Thursday, Mt. Gox transferred around 47,000 bitcoin worth nearly $2.7 billion from cold storage, raising concerns that creditors might sell those coins. These repayments are an important step toward resolving Mt. Gox's bankruptcy proceedings following the 2014 hack.
Forecasts and market stress
Analysts are predicting short-term price drops to $50,000 due to selling pressure from Mt. Gox withdrawals. Ongoing German government transfers are adding to market stress, while others argue that withdrawal volumes may have limited impact on the market.
Expected volatility
Due to the Mt. Gox payouts and the upcoming German government sales for July, significant volatility is expected in the market in the near future, with analysts warning of sharp fluctuations in the coming weeks.
