Bitcoin Crashes Toward $50,000 as Mt. Gox Begins Moving Billions of Dormant Bitcoin

The bitcoin price has lost around 25% over the last month, with the combined bitcoin, ethereum, XRP, solana and crypto market coming within touching distance

Bitcoin has crashed toward $50,000 per bitcoin after Federal Reserve chair Jerome Powell warned of a "critical period."

Now, collapsed bitcoin exchange Mt. Gox has begun moving what could be a tidal wave of bitcoin.

Crypto traders are braced for another bitcoin, ethereum, XRP and solana price shock.

"On July 5,2024, the [Mt. Gox] rehabilitation trustee made repayments in bitcoin and bitcoin cash to some of the rehabilitation creditors through a part of the designated cryptocurrency exchanges etc. in accordance with the rehabilitation plan," a letter addressed to "whom it may concern" read that was posted to the Mt. Gox website.

Shortly after being posted, the document was unavailable but it wasn't immediately clear why.

Earlier, bitcoin and crypto analysts with Arkham Intelligence said they had seen almost 50,000 bitcoin—worth around $2.7 billion—controlled by Mt. Gox moved to a different wallet in what could be a sign the crypto could soon be distributed to creditors.

"Should an additional 200,000 bitcoin—valued at more than $10 billion—hit markets in a short space of time, supply will likely outstrip demand, and we could see the price of bitcoin drop even further," Neil Roarty, analyst at investment platform Stocklytics, said in emailed comments.

In late June, Mt. Gox trustees announced the exchange, which collapsed 10 years ago, would begin distributing almost $10 billion worth of funds in bitcoin, bitcoin cash and fiat currency to its creditors in early July.

The bitcoin price has crashed back from its recent high of over $70,000 per bitcoin and now looks at ... [+] risk of crashing under $50,000, weighing on ethereum, XRP, solana and other cryptocurrencies.

"The direction of bitcoin in the coming days will be determined by the selling pressure from Mt. Gox users," Rachel Lin, the chief executive of decentralized exchange SynFutures, said in emailed comments.

"The market expects most Mt. Gox users dump their tokens, but we might see a bounce back if the selling is lower than anticipated. On the other hand, if there is enough selling to push the price lower, we might be looking at the $50,000 level soon."

Lin warned the "crucial levels" for bitcoin and ethereum were $60,000 and $3,350, respectively—both of which have now been "decisively" broken.

"As expected, the fall in bitcoin has dragged down all the other assets," Lin said. "Ethereum is down nearly 9% over the week, and most memecoins are down 10% to 20%.

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