Investing.com — Bitcoin fell sharply at the start of Asian trading on Monday, reversing a small rebound seen over the weekend and hitting a four-month low on concerns over a surge in token supplies from shuttered crypto exchange Mt. Gox.
Bitcoin has fallen 5.8% over the past 24 hours to $54,601.7 as of 21:28 ET (01:28 GMT), near its lowest price since late February and below the key support level of $55,000.
Bitcoin has fallen sharply over the past two weeks amid concerns over the distribution of tokens by Mt. Gox, after the exchange’s administrator said last week that it had begun distributing tokens stolen in a 2014 hack to creditors via a number of exchanges, but did not disclose the exact number of tokens being returned.
Earlier this year, approximately $9 billion worth of Bitcoin was seen being mobilized from wallets associated with the exchange.
Mt. Gox has become a hot button issue for the cryptocurrency market, as traders have speculated that recipients of the tokens are likely to sell them on the open market, increasing the token supply, given the massive increase in Bitcoin’s price over the past decade.
Concerns over such a scenario led to widespread Bitcoin dumping, with several Bitcoin “whale” wallets appearing online to sell off their holdings.
Bitcoin’s sell-off rippled across the cryptocurrency market, with the world’s second-largest token falling 7.3% to its lowest in two months.
