Bitcoin (BTC) fell more than 3% on July 16 as “FUD” speculation surrounding the closed exchange Mt. Gox resurfaced.
Mt. Gox Bitcoin Leak Sends Price Down Below $6,000
According to data from Cointelegraph Markets Pro and TradingView, the BTC price appears to be under pressure after hitting $65,000 on Bitstamp.
The downtrend occurred as BTC belonging to Mt. Gox moved between wallets affiliated with the rehabilitation program.
According to data from cryptocurrency intelligence firm Arkham, the amount involved was around 92,000 BTC (around $5.7 billion) stolen from Mt. Gox’s cold wallets. That’s about two-thirds of the exchange’s total holdings.
“Mt. Gox moved $44,527 BTC (28.4B) to an internal wallet 5 minutes ago, which may be preparing for a redemption,” on-chain analytics platform Look Into Bitcoin responded to X (formerly Twitter).
A similar incident surrounding Mt. Gox, which was hacked and shut down 10 years ago and had to distribute refunds to creditors who originally lost their money, has had a negative impact on the price, and the market is concerned about a massive BTC sell-off as a result.
But some people believe such fears are out of touch with reality.
Popular cryptocurrency investor and YouTuber Quinten Francois wrote as part of X’s response, “Here comes the next Bitcoin FUD.”
As Cointelegraph reported, the selling pressure that has rattled markets in recent weeks has come from the German government, which has been depleting its stock of confiscated BTC.
BTC price closes to major “bullish trend line”
A wave of concern has derailed claims that Bitcoin is on track for its best performance in months.
Related: BTC Price at All-Time High in July? 5 Things to Know About Bitcoin This Week
BTC/USD last hit $65,000 on June 21, a significant level for short-term holding costs for Bitcoin.
The speculator’s cost base, also known as the realized price, traditionally acts as a support level in bull markets and was last breached in August 2023.
Look Into Bitcoin estimated the short-term cost of holding at $64,835 as of July 15.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.