Key points
- Bitcoin fell below $54,000 following a transfer of $2.7 billion in BTC from Mt. Gox.
- The transfer is linked to a payment plan to distribute more than $9 billion among creditors.
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Bitcoin's value fell to $57,000 on Thursday evening and hit a low of $53,800 in the early hours of Friday, according to data from TradingView. The extended correction came after a movement of $2.7 billion worth of Bitcoin from a Mt. Gox wallet to a new address yesterday.
On Thursday evening, a wallet controlled by Mt. Gox, the now-defunct cryptocurrency exchange platform, transferred 47,229 BTCworth around $2.7 billion, to a new hot wallet, Arkham data shows.
The latest wallet activity is believed to be part of the Mt. Gox trust. plan to distribute more than 9 billion dollars in Bitcoin, Bitcoin Cash and fiat to creditors starting in July. The trustee publicly revealed the payment plan last month.
Bitcoin's bearish momentum has been exacerbated by the recent moves by Mt. Gox. There has been increased pressure in recent weeks due to the from the German government and the US Government Bitcoin Transfers.
According to CoinShares, payment to Mt. Gox creditors could trigger panic selling in cryptocurrency markets. The worst-case scenario is a Daily drop of 19% If all BTC are sold simultaneously, but this is highly unlikely.
As Bitcoin loses momentum, altcoins plummet. Ethereum fell below $3,000, losing 10% over the past day, according to CoinGecko data sample.
Over the past 24 hours, Binance Coin (BNB) and Toncoin (TON) fell by 12% and 13% respectively. Dogecoin (DOGE) and Cardano (ADA) suffered sharp declines of 15% each. TRON (TRX) dropped by 3.5%.
Fear grips the cryptocurrency market as the fear and greed index falls to 29, according to data from Alternative.me.
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