Investing.com — Bitcoin prices fell on Monday amid lingering concerns over distributions from the now-defunct Mt Gox cryptocurrency exchange, which also weighed on sentiment toward broader cryptocurrency markets.
Still, the world’s largest cryptocurrency found some support around the $55,000 level after sinking to more than four-month lows early Monday. It fell 3.8% over the past 24 hours to $55,450.3 as of 01:25 ET (05:25 GMT).
The token and the broader crypto space received little support from a weaker dollar, with reports suggesting that major Bitcoin wallet holders had also begun mobilizing their wallets for potential sales.
Bitcoin Takes a Hit as Mt Gox Distribution Begins
Trustees of the now-defunct Mt Gox cryptocurrency exchange said they had begun distributing tokens to customers affected by a hack in 2014.
While the trustees have not detailed the value of the distributions, wallets associated with the exchange were observed moving around $9 billion worth of Bitcoin earlier this year.
Traders have abandoned Bitcoin out of fear that token recipients will be encouraged to sell their holdings, given Bitcoin’s massive price surge over the past decade. Such a scenario presents enormous selling pressure on the token.
Several Bitcoin “whale” wallets were spotted online for potential sales of their holdings, while inflows to cryptocurrency investment products have also largely dried up in recent weeks.
Cryptocurrency price today: Altcoins follow Bitcoin's losses, rate signals in focus
Among the broader cryptocurrency markets, major altcoins largely followed Bitcoin's steep price decline.
The world's No. 2 token sank 4.1% to $2,906.21. The token fell below $3,000 for the first time since May.
and fell between 4% and 7%, while meme tokens and lost 6.6% and 4.6%, respectively.
The selling pressure on Bitcoin extended to major altcoins, given that the token generally acts as a representative figure for the cryptocurrency industry.
As such, cryptocurrency prices largely ignored the recent weakness of the dollar, amid growing optimism about interest rate cuts by the Federal Reserve. This trend caused Wall Street to hit all-time highs.
The ECB will offer further clues on interest rates this week. Key data on US inflation will also be released.
