• Bitcoin fell below $58,000 for first time since may, marking a loss of 5% in 24 hours.
  • Mt. The Gox wallets that had been dormant a month showed signs of activity, with transactions. This could be a sign of increased selling pressure and asset distributions.

BTC Price Index and Live Chart – CoinDesk”>(BTC) plunged under $58,000 in European morning hours, extending 24-hour losses to nearly 5% and dropping to prices not seen since early May.

The sale of crypto assets came at the same time as wallets from defunct crypto-exchange Mt. Gox began to show signs of life for the first month. The German Federal Criminal Police Office also transferred over $75 million into crypto exchanges.

Lucy Hu, senior analyst of crypto investment firm Metalpha said that the German government had moved more than $50,000,000 to crypto exchanges. This led to a sell-speculation in the market.

Mt. Gox will begin distributing the assets that were stolen by clients during a hack in 2014 this month. However, it’s unclear exactly when. After years of delayed deadlines, there is no clear date. The repayments are to be made in Bitcoin and bitcoin cash (BCH), and as reported previously, could increase the selling pressure on both markets.

The wallets tracked by Arkham reveal Mt. Gox wallets performed test transactions during the Asian morning. They moved a total amount of $25 in bitcoins across three different transactions.

Mt. The Gox wallets were active. (Arkham)

It is known that token holders who hold large amounts transfer small amounts before making larger transfers, which could indicate an intent to sell.

Arkham data showed that the German entity transferred $175 million BTC into various wallets. Of this amount, $75 million was sent to cryptocurrency exchanges Kraken or Coinbase. Arkham CEO Miguel More told CoinDesk previously that transfers from a wallet into an exchange could indicate a desire to sell tokens.

Bitcoin has fallen below a widely followed technical indicator, for the first since October. This signals a possible downward trend in the months to come.

Sheldon Reback is the editor.