What is happening with Bitcoin, why is it falling?

Bitcoin falls below $58,000 amid movements from Mt. Gox wallets that showed activity for the first time in a month and the German government

BTC plummeted below $58,000, extending 24-hour losses to nearly 5% and falling to prices not seen since early May.

The selloff came as wallets belonging to the defunct cryptocurrency exchange Mt. Gox showed signs of activity for the first time in a month and Germany's Federal Criminal Police Office moved more than $75 million to cryptocurrency exchanges.

“Among the main reasons for the price drop is the fact that the German government moved more than $50 million to cryptocurrency exchanges, creating selling speculation in the market,” said Lucy Hu, senior analyst at the trading firm. investment in Metalpha cryptocurrencies, in a Telegram message.

Mt. Gox is scheduled to begin distributing assets stolen from its customers in a 2014 hack this month, although it is unclear when, after years of postponed deadlines. Redemptions will be made in bitcoin and bitcoin cash (BCH) and could add selling pressure to both markets, as previously reported.

Wallets tracked by Arkham show that Mt. Gox wallets made test transactions during the Asian morning, moving a total of $26.95 in bitcoin in three transactions to different wallets.

Entities holding large amounts of tokens have been known to move insignificant amounts between wallets before making larger transfers, which may indicate an intention to sell.

Arkham data also showed that the German entity moved $175 million worth of BTC to various wallets, $75 million of which was sent to Kraken and Coinbase.

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