Bitcoin dropped to a four-month low of $53,500 on Friday before recovering to around $55,700. The correction follows news that the defunct Mt. Gox exchange began repaying creditors in Bitcoin and Bitcoin Cash. Trustee Nobuaki Kobayashi confirmed that repayments have started but did not specify the amounts transferred to exchanges.
Additional pressure came from the German government moving $75 million in confiscated crypto to exchanges and the Federal Reserve’s minutes indicating no imminent interest rate cuts. Higher rates typically reduce investor interest in riskier assets like Bitcoin.
Bitcoin, which peaked at over $73,700 in March after approving a U.S. spot Bitcoin ETF, is now down 27% from its high. Analysts point to the $52,000 level as critical support, with $48,000 as the next strong support zone if declines continue. For a bullish reversal, Bitcoin needs to reclaim the $60,000 mark.
