Bitcoin Tumbles Below $57,000 on Mt. Gox Jitters and Selling Pressure

Bitcoin has dropped in the past three days, touching the $57,000 mark and reaching lows not seen since early May.

Mt. Gox Repayments

One possible impact is the upcoming distribution of Bitcoin from Mt. Gox, the defund exchange that lost a massive amount of crypto in a 2014 hack. This long-awaited distribution will see over $9.4 billion worth of Bitcoin returned to approximately 127,000 creditors. With repayments to creditors expected to begin this month, some fear this influx of Bitcoin could flood the market, and drive prices down.

Investor Confidence and Liquidations

The price decline may have also triggered a wave of liquidations in the derivatives market, as leveraged long positions are forced to close.

Another possible factor is the recent transfer of a large amount of Bitcoin by the German government to crypto exchanges, which has fueled speculation of increased selling.