Summary
- Bitcoin is trading above $55,000 following a recent price dip below the level.
- The price drop comes amidst new fears of sales from Mt. Gox distributions.
Bitcoin started the week with a new price dip at around $54,400 after a rebound to the current price of $55,700.
At the moment of writing this article, BTC is down by around 3% in the last 24 hours.
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Coinglass data reveals that BTC recorded over $119 million in liquidations in the past 24 hours.
According to the latest reports coming from Bloomberg, BTC is now under pressure due to new concerns about potential sales of coins by creditors of the failed Mt. Gox exchange.
The publication notes that BTC slid about 5% to trade at $54,400 as of Monday, July 8 in Singapore.
The same notes reveal that sentiment has also been hampered by signs of the German government’s disposals of seized BTC, while global markets as a whole are in a cautious mood as investors are assessing the results of the weekend elections in France.
Major Bitcoin Test at 200-Day Average
Bloomberg reminded readers that the world’s biggest Bitcoin exchange, Mt. Gox was hacked back in 2011 and went bankrupt in 2014. The long-awaited return of funds to creditors has put the focus on a potential wall of supply coming into the market.
The important question for digital assets is when the “overhang” of sales related to Mt. Gox and Germany will lift, according to Chris Weston, head of research for Pepperstone Group said.
Bloomberg also noted that analysts see a major BTC test at a 200-day average.
On July 5, the defunct Japanese crypto exchange announced the beginning of Bitcoin and Bitcoin Cash repayments for its creditors.
In their official announcement released on the same day, the Rehabilitation Trustee stated that it made repayments to some of the rehabilitation creditors as a part of the designed crypto exchanges.
The Rehabilitation Plan also revealed the important conditions that have to be met by creditors in order to be eligible to receive their payments.
