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Mt Gox payouts ups the pressure on Bitcoin (BTC) leading the asset to the worst week in months

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19
Nov
  • Bitcoin is headed into the weekend trading under $56,000 after a more than 5 percent dump in the last 24 hours.
  • Investors are worried that creditors of the collapsed crypto exchange Mt Gox might liquidate their payments.

Bitcoin has fallen to a one-month low on Friday after dumping to the $56,000 low. The top crypto king has dragged with it the rest of the market with Ethereum (ETH) at a three-week low under $4,000. A majority of top altcoins have lost between 3 percent and 10 percent. The total market cap has fallen from the $3 trillion high and is holding above $2.6 trillion.

BTC has been under pressure from political developments from the east and the west. In the U.S, the infrastructure bill passed has brought up some issues for crypto service providers.

Related: These political events might be influencing Bitcoin price correction, BTC under $60,000

Cardano founder Charles Hoskinson himself blamed the poor performance to the bill recently stating;

we are in a slightly bad position today because the Infrastructure Bill was passed. If it’s left to its own devices, by 2023 when these mandates come into place…depending on how they are interpreted and what the IRS does with it, it can cause catastrophic damage.

In China, the government continues to clamp down on any crypto-related business. In the latest development, China has warned state-owned enterprises to cease involvement in Bitcoin mining. This followed the dismissal of a former Jiangxi government official for breaching national standards by mining digital assets. Since, there’s been increased pressure on provinces and municipalities to investigate state-owned entities.

Related: CZ: China is more serious with its ban this year than in 2017

Worsening the case for Bitcoin is investor fears that creditors of collapsed crypto exchange Mt Gox might liquidate their payments. After final approval from Trustee, defunct exchange Mt Gox is near the end of its rehabilitation plan in which it will return nearly 141,686 Bitcoin to its rightful owners. Many expect that these will be dumped on the market.

At the time of press, Bitcoin has been down by 13 percent in the last 7 days and by early 6 percent in the last 24 hours. According to our data, BTC is exchanging for $55,900 a critical level to be ahead of the weekend.

Investors see a Bitcoin (BTC) buying opportunity

With BTC visiting critical supports, some investors are seizing the opportunity to accumulate. Analyst Willy Woo is among those calling this a buying opportunity.

Host CNBC Crypto Trader Ran Neuner blames the current drop on overleveraging. Speaking out on Twitter, the analyst who suggested that prices might fall as low as $53,000 noted;

I wish this market would just drop to $53000 so we could get all the leverage out and move on… this slow road down isn’t working!

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