Behind this decline lie two important developments that shook investor confidence: the bankrupt cryptocurrency exchange Mt. Gox’s Bitcoin movements and the general pressure on the crypto market.

Mt., which went bankrupt in 2014. Gox was the victim of one of the largest cryptocurrency exchange hacks in history. The company lost millions of dollars of Bitcoin from its users, and this caused a great loss of trust in the industry. After protracted legal battles, Mt. Gox is preparing a $9 billion payment to its creditors.

However, in this process, the exchange made a suspicious move: it transferred 47,000 Bitcoins worth approximately $2.6 billion to a new wallet. This move has attracted investors to Mt. Gox refunds could increase supply to the market, fueling concerns that prices could be driven down.

Mt. Gox’s shadow, the crypto market had already been under pressure for a while. After the Bitcoin halving in April, mining rewards were halved. This situation both negatively affected mining activities and increased investors’ concerns about the entry of new supply into the market.

Additionally, at Bitcoin’s current level, only a few ASIC mining rigs can operate profitably. This could potentially weaken mining activities and therefore the security of the network.

As Bitcoin fell below $55,000, speculators’ positions began to be liquidated. According to Coinglass data, long and short positions worth $682 million were liquidated in the last 24 hours.

The largest single liquidation took place on the Binance exchange for $18.4 million in the ETH/USDT trading pair. These liquidations increased the selling pressure in the market, causing the Bitcoin price to drop even further. According to CoinGecko data, the total cryptocurrency market value was also affected by this situation, falling by more than 8% to $2 trillion.

TRON founder Justin Sun expressed his intention to support the industry in this crisis environment. Sun hinted to the German government that he was “willing” to buy seized Bitcoins over-the-counter. However, it remains unclear when these negotiations will begin.

On the other hand, Bitcoin transfers from Germany-related addresses to central exchanges allow investors to move to Mt. Gox to focus on its refunds. This situation leads to increased uncertainties about the course of the market in the near future.

Bitcoin’s recent decline has once again revealed the fragility of the crypto market. Mt. Gox’s questionable transfers and general market pressure have damaged investor confidence. In the coming period, Mt. How Gox’s refunds are reflected in the market and the development of Justin Sun’s offer will be followed closely. These developments may give clues about the future of the crypto market.