Bitcoin Drops Below $57,000 Amid Market Turmoil and Mt. Gox Movements

Bitcoin’s price fell below $57,000, hitting $56,950 in early European trading on Thursday, marking its lowest since early May and falling below the 200-day moving average of $58,492. This three-day decline has alarmed investors.

The price drop is influenced by the German government’s transfer of 1,300 BTC ($75.53 million) to exchanges like Bitstamp, Coinbase, and Kraken, as reported by Arkham. Additionally, minor Bitcoin transfers from Mt. Gox-related wallets, believed to be test transactions, are preparing for the impending $9.4 billion repayment to 127,000 creditors, potentially increasing market supply and exerting downward pressure.

CoinGlass data reveals $100.4 million in Bitcoin liquidations, predominantly leveraged long positions. Analysts from Bitfinex and 10x Research indicate that Bitcoin has decoupled from U.S. equities and may face further declines towards the low $50,000s, impacted by potential selling from Mt. Gox creditors and Germany’s Federal Criminal Police Office.

Image source: Coinpedia