Mt.Gox dumping concerns are rekindled Bitcoin plummets close to 6%

Amid concerns about the possibility that creditors of the bankrupt Mount Gox Exchange will dump bitcoins, the world's largest cryptocurrency is under new pressure. The Mount Gox Exchange is reported to have begun returning approximately $8 billion worth of bitcoin reserves.

On Monday, the price of Bitcoin fell nearly 6% and is hovering around $55,000. Small tokens such as Ether, Ripple, and the hugely popular DogCoin are also falling.

Signs that the German government will dispose of the bitcoins seized have also become a burden of sentiment, and the entire global market was wrapped in a cautious mood as investors determined the French election results last weekend.

Tokyo-based Mount Gox used to be the world's largest bitcoin exchange, but it was hacked in 2011 and went bankrupt in 2014. Also, since Mt.Gox creditors received compensation and sold part of their Bitcoin assets, there is a possibility that upward pressure on Bitcoin prices will be applied.

Chris Weston, who is in charge of research at the Pepperstone Group, wrote in the report that the biggest problem facing digital assets is when “oversales” related to Mount Gox will be resolved.

Bitcoin prices soared to record highs in the first quarter, fueled by demand for digital assets due to America's first ETF. Since then, the inflow of funds has slowed, and Bitcoin's lead over assets such as stocks has rapidly deteriorated since the beginning of this year.