Bitcoin fell for a fourth straight session to its lowest since February as concerns range from possible government sales, creditors of a failed exchange and troubled cryptocurrency miners.

The market data shows that BTC broke through $56,500 and is now trading at $56,456.52, down 2.48%.

Most cryptocurrencies fell broadly despite gains in stock markets, highlighting a host of challenges facing the industry.

Bitcoin is now down about 25% from its March peak as a rush to invest directly in ETFs traded on U.S. exchanges has given way to concerns about long-term high interest rates and political uncertainty.

A perfect storm of negative factors led to the recent plunge in Bitcoin prices. The main culprit appears to be the start of creditor payments from the defunct cryptocurrency exchange Mt. Gox. This massive Bitcoin liquidation sparked investor panic, leading to a wave of selling that pushed prices down to near yearly lows.

Administrators of the failed Mt. Gox exchange are returning $8 billion in bitcoin to creditors in stages. Uncertainty about how much of the bitcoin will ultimately be sold has had an impact on the market. On Friday, wallets associated with Mt. Gox moved $2.7 billion in tokens, according to Arkham Intelligence.

There are also signs that German authorities are preparing to sell 50,000 bitcoins they confiscated earlier from online criminals. Bitcoin miners are under pressure to sell their coins to cope with disappearing profits.

MSCI Inc.’s global stock market index is approaching all-time highs, and the short-term 30-day correlation between bitcoin and the index is falling. The question is whether the risk aversion in cryptocurrencies is just isolated or also signals a cautious quarter for mainstream investing after a strong first half for stocks.

“There’s a general lack of attention in the cryptocurrency market right now,” said Stefan von Haenisch, head of trading at OSL SG Pte. “Most of the news circulating right now, such as the Mt. Gox sale, is more pessimistic.”

Von Haenisch said that cryptocurrencies need a more dovish view on monetary policy from the Federal Reserve, adding: “One or two rate cuts, coupled with an expansion of the Fed’s balance sheet, are the two key ingredients that cryptocurrencies are really waiting for.”

Willy Chuang, chief operating officer of cryptocurrency exchange WOO X, said the selling pressure is mainly concentrated in the short term.

While internal cryptocurrency dynamics are driving current negative sentiment, today’s release of the much-anticipated U.S. nonfarm payrolls data cannot be ignored. “It is worth noting that despite these concerns, the long-term impact may not be as severe as the market gradually absorbs the selling pressure,” Chuang said. “Short-term market fear is expected, but in the long run, these negative factors may gradually dissipate.”

A report showed U.S. job growth slowed in June and data for prior months was revised down, increasing the likelihood that the Federal Reserve will start cutting interest rates in the coming months.

The Federal Reserve’s scaling back of its rate cut forecasts and the high operating costs faced by Bitcoin miners after the halving are also factors contributing to the overall downward pressure. In addition, historical trends suggest that Bitcoin may be experiencing a period of seasonal selling activity.

Bitcoin hit an all-time high of $73,798 in March, supported by unexpectedly strong demand for the token’s first U.S. ETF. Subsequent easing inflows pushed bitcoin lower and cast a shadow over other digital asset markets.

The first U.S. ETF is in the queue for approval of Ethereum, the second-largest token, but interest in these products may be mixed if the cryptocurrency sell-off continues.

Coinglass data shows that more than $536 million in bullish cryptocurrency positions were liquidated in the past 24 hours. The liquidation amount in the past three days is one of the highest since April.

“The illiquidity over the weekend will exacerbate any movement, even small, caused by liquidations,” said Caroline Mauron, co-founder of digital asset derivatives liquidity provider Orbit Markets. She added that the return of U.S. investors from the July 4 holiday should help bring some stability.

Additionally, selling of Bitcoin by the U.S. government and potentially institutions associated with the German government added to the bearish sentiment. These additional sales pushed prices down further, especially considering that the U.S. market was closed during the critical support breakout.

With Bitcoin currently trading near its yearly low, all eyes will be on the U.S. markets reopening today and how institutional investors react. Demand for Bitcoin ETFs has been rising recently, and their behavior could determine the direction of the cryptocurrency.

The ongoing Mt. Gox payout increases the likelihood of a continued price decline as investors anticipate further selling. This could be exacerbated by ETF sales triggered by a bearish market perception.

Despite the current negative sentiment, Bitcoin could still see a recovery wave once the sell-off finds its equilibrium. This could depend on positive developments and confirmation of a potential recovery through technical indicators.

However, positive US jobs data and slowing BTC transfers from Mt. Gox could boost sentiment. To recover, Bitcoin needs to close above $57,300 this week. Also, watch the currently sharply falling Stochastic RSI for signs of slowing down and reversing upwards, which could signal a potential recovery.

If Bitcoin fails to hold the $53,500 support level, the market could see it drop below $50,000.

Bitcoin could see a wider correction

FXPro senior market analyst Alex Kuptsikevich pointed out that Bitcoin has now fallen below its 200-day moving average.

The indicator is used to determine market direction – sustained trading below it often signals a recession.

“As things stand, a 12% drop to $51,500 (February consolidation area) is more likely than a 12% rise to $65,800,” he wrote Thursday morning. The higher forecast is based on Bitcoin’s 50-day moving average.

However, bullish analysts remain confident that Bitcoin will return this year.

On Monday, Fundstrat’s Tom Lee predicted that the cryptocurrency’s price will surge to $150,000 by the end of the year once the risks surrounding Mt. Gox subside.

Others, such as Galaxy CEO Michael Novogratz, warned months ago that Bitcoin would experience a correction before continuing its rise. In February, he said Bitcoin’s floor was $50,000.

Still, bitcoin is up more than 38% so far this year after a massive bull run that pushed it to a record $73,798. The rally was sparked by the launch of a bitcoin spot ETF in January.