Bitcoin (BTC) Price Tumbles 8.6% Weekly as Mt. Gox Payout Concerns Mount

Bitcoin hit a two-month low on Thursday, as the world's biggest cryptocurrency slid past $58,000 for the first time since May.

Bitcoin fell below $58,000 on Thursday for the first time since May, as the world’s biggest cryptocurrency continued to slide amid concerns over selling pressure.

The apex token dropped 3.5% throughout the day, reaching a low of $56,882 at one point. The decline comes as worries grow over impending selling pressure in the market, extending a three-day跌幅.

FXPro senior market analyst Alex Kuptsikevich noted that the decline has now pulled bitcoin below its 200-day moving average. This metric is used to determine the direction of a market, with consistent trades below the gauge usually indicating a downturn.

"From the current levels a 12% drop to $51.5k (February consolidation area) is more probable than the same magnitude of growth to $65.8k," he wrote on Thursday morning. The higher projection is based on bitcoin's 50-day moving average.

Bitcoin has already suffered an 8.6% decline three days into the month. Driving the sell-off is looming concern over payouts from Mt. Gox, a crypto exchange that was declared bankrupt nearly a decade ago.

The planned payments are to reimburse customers who were victims of a 2014 hack, and will be doled out in either bitcoin or bitcoin cash. But that's adding to fears over selling pressure, as customers could cash their tokens for large gains.

According to K33 research, the concern has been weighing on bitcoin's price in recent sessions.

Other crypto tokens, like ether and solana, are following bitcoin lower. In fact, the total market capitalization of the industry fell to a February low on Thursday, dropping below $2.17 trillion, according to Kuptsikevich.

Still, bullish analysts have remained confident about bitcoin's comeback this year. On Monday, Fundstrat's Tom Lee projected that the crypto will surge to $150,000 by the end of the year, once the Mt. Gox overhang passes.

Others, like Galaxy CEO Michael Novogratz, warned months ago that a bitcoin correction will come before it can continue climbing higher. Speaking in February, he suggested a floor of $50,000.

Bitcoin is up over 38% year-to-date, after a massive bull run sent the token to a record $73,798. The launch of bitcoin spot ETFs in January sparked the upside.

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