Bitcoin Falls Below $58,000, Reaching Lowest Level Since May amid Fear of Mt. Gox Selling Pressure

Bitcoin hit a two-month low on Thursday, falling below $58,000 for the first time since May. The world’s biggest cryptocurrency dropped 3.5% in a single day, reaching as low as $56,882. This decline has pushed bitcoin below its 200-day moving average, a key indicator that could signal a downturn, according to FXPro’s Alex Kuptsikevich.

Investors are selling off bitcoin amid fears of selling pressure from Mt. Gox, a crypto exchange that declared bankruptcy nearly a decade ago. The exchange is set to make payments to clients who were victims of a 2014 hack, offering them bitcoin or bitcoin cash. This has raised concerns that clients may choose to sell their tokens, putting further pressure on the market.

The decline in bitcoin has also dragged down other cryptocurrencies like ether and solana. The overall industry market capitalization fell to a February low on Thursday, dropping below $2.17 trillion. Despite the recent downturn, some analysts remain bullish on bitcoin’s long-term prospects.

Fundstrat’s Tom Lee has projected that bitcoin could surge to $150,000 by the end of the year once the Mt. Gox overhang passes. However, Galaxy CEO Michael Novogratz has warned of a potential correction before bitcoin can resume its upward trajectory. Despite the recent volatility, bitcoin is still up over 38% year-to-date, following a massive bull run earlier in the year.