Bitcoin tumbled 6% on Monday, June 24, to exchange hands below $60,000 as bears sought a third consecutive week of negative outings.

Bitcoin price plunged to test a 50-day low at $59,825 amid news of embattled crypto exchange Mt. Gox promised to pay back creditors in July. The tumble coincides with the news of Mt. Gox creditors receiving Bitcoin and Bitcoin Cash repayments next week.

The leading global crypto by market value witnessed sustained cooling off in June, eroding the gains realized during the exciting start when the SEC approved spot Bitcoin ETFs. The first decline below $60,000 since early May suggests market panic on the fears of the Mt. Gox creditors dumping the Bitcoin into the market.

The market data reflects that Bitcoin dipped by 6.2% in the past 24 hours to test the daily low price of $59,962 per CoinGecko data. Elsewhere, the US leading crypto exchange Coinbase represented a larger Bitcoin tumble to exchange hands at $59,780.

Market Panic Selling Over Mt. Gox’s Bitcoin Dump

The month-long correction of Bitcoin price emerges as the now-defunct Japanese crypto exchange Mt. Gox is set to repay creditors. The platform suffered an exploit in 2014, resulting in $63.6 million worth of Bitcoin lost, currently valued at $46 billion.

Mt.Gox is set to distribute $9 billion in Bitcoin and Bitcoin cash a decade later to the creditors starting next week. A note by the Rehabilitation Trustee, Nobuaki Kobayashi, affirmed that the creditors will receive payments beginning in early July.

The news brought scare in the crypto market that the Mt. Gox creditors would immediately dispose of the reclaimed coins. Data by Spot on Chain shows the three wallets owned by the defunct Mt. Gox, which hold 141,686 Bitcoins valued at $8.71B.

The sale of the reclaimed Bitcoin could see the crypto space see a comparable capital amount as the flow following the US Bitcoin ETFs approval on January 10.

Bitcoin Plunge Spur Liquidations

The Bitcoin price has plummeted while the US Bitcoin ETFs have lost $1.2 billion worth of assets outflow, as CoinShares reports. CoinShares research head James Butterfill attributes the outflow to a pessimism spreading among investors who are skeptical that the Federal Reserve (Fed) will announce rate cuts this year.

The Bitcoin dip is linked with over $300M crypto positions liquidated in the past 24 hours, according to CoinGlass. Market data on Monday shows over $293 million selling from long positions from investors who bet the price will increase.

Bitcoin constitutes the dominant share of the outflow with $145M liquidations, where 92.4%, translating to $134M, were from long positions.

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