Bitcoin below $55,000, down fourth day as Mt Gox repays creditors

Other crypto assets ether, Solana and meme coins such as dogecoin too are under pressure.

Bitcoin fell below $55,000 - down for a fourth day - testing levels last since in February this year on fresh supply as Mt Gox exchange administrators dispose off tokens to creditors.

This fall of over 8 percent in bitcoin has come in contrast to the record run on global equities, especially in US and Japan.

Prices are also weighed down by a potential mass sale from a defunct crypto exchange Mt Gox. Administrators of the exchange are returning over 137,000 Bitcoins - worth over $8 billion - to creditors in tranches. Mt Gox is finally distributing assets that were stolen from clients in a 2014 hack this month. The repayment will be in bitcoin and bitcoin cash and could possibly add selling pressure, according to coindesk.

Other smaller crypto assets Ether, Cardano, Solana and meme coins such as dogecoin too were under pressure, in some cases down over 10%.

“The $51,000-$52,000 range is crucial as a lot of Bitcoin miners are reaching their break-even point for profitable mining,” Le Shi, head of trading at market making and algorithmic trading firm Auros told Bloomberg.

Track the latest updates of crypto asset prices right here.

Bitcoin had hit an all-time highi of $73,798 in March 2024, riding on strong demand for US ETFs for the token.

Bitcoin investors are also weighing the US election scenario, given the buzz around Joe Biden's candidature despite Democrats maintaining he remains firmly in the Presidential race. “The likelihood of a stronger Democratic candidate replacing Biden who might not be pro-crypto is a factor,” Richard Galvin, co-founder of hedge fund Digital Asset Capital Management told Bloomberg. The industry is also looking towards Republican nominee and former US President Donald Trump, who's stance has been favourable towards cryptocurrencies.

Trump has vowed support for the crypto industry and promised to ensure all future Bitcoin mining is done in the US.