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Bitcoin price fell sharply on Monday as the market reacted to latest news around defunct crypto exchange Mt.Gox.
This comes as the exchange announced plans to begin creditor repayments with 141,868 BTC worth $8.8 billion. As Bitcoin dropped below $62k, most altcoins, including Ethereum, Solana and BNB were also down.
Bitcoin price dips amid Mt.Gox news
Bitcoin price has struggled with bearish pressure for much of the past month, with bulls unable to break higher amid multiple downward catalysts.
The macroeconomic environment, miner sell-off and huge liquidations by the German government added to the overall lull that historically hits the market in the summer and post-BTC halving.
Although BTC survived a bearish flip below $60k in early May, the upward bounce collapsed around $71k and it’s been in a downtrend since.
Today’s news has seen Bitcoin price dip sharply below $62k, dumping 3% in an hour to touch lows of $61,060 on major exchanges.
According to details in an official notice, the defunct exchange plans to start creditor redistributions this July. Assets set to hit holder wallets include Bitcoin and Bitcoin Cash, as well as fiat.
It’s been nearly a decade since Mt.Gox got hacked in 2014, and creditors who’ve waited this long are owed more than $9.4 billion in BTC, $72 million in BCH and $446 million in cash. Analysts have previously noted the Mt.Gox payments could provide some sell-off pressure.
CoinGecko data shows that BTC price is down 5% in the past 24 hours. While more details on the Mt.Gox repayments are due, investors anticipating more losses could panic sell to add to a potential dip below $60k.
Crypto analyst Michael van de Poppe says the market’s reaction might include some “overvaluations in fear.”
This correction is news-driven for #Bitcoin & #Altcoins.
— Michaël van de Poppe (@CryptoMichNL) June 24, 2024
Perhaps due to the Mt. Gox news.
Repayments starting in July. Markets dropping down substantially, but it's more than likely that this event has some overvaluations in fear than what it should be.
Might be the low. pic.twitter.com/NBEEznEK2d
Altcoins in red as BTC battles bears
Altcoins have mirrored the downward pressure for BTC over the past few weeks, and today’s retreat for the top cryptocurrency still triggered selling for many of the top coins by market cap.
Many of these altcoins could also see a major comeback alongside Bitcoin should bulls reclaim control. However, Ethereum is currently down 5.8%, BNB has dipped 4.8%, Solana 6.4% and XRP 3%. Toncoin, which has outperformed peers in recent weeks, is down 6% in the past 24 hours.
The crypto market correction has seen the global crypto market cap fall more than 5% to $2.34 trillion.
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