The Crypto Market is Under Pressure as Bitcoin (BTC-USD) Prices Experience a Downturn

The crypto market is under pressure as bitcoin (BTC-USD) prices experience a downturn following Mt. Gox's initiation of customer repayments.

Bitcoin (BTC) prices experienced a downturn on Wednesday after the collapsed exchange Mt. Gox began initiating customer repayments, sparking concerns about a potential bitcoin correction or sell-off.

This development also led to declines in the stock prices of major cryptocurrency exchanges, such as Coinbase Global (COIN).

Mt. Gox, once the largest bitcoin exchange in the world, collapsed in 2014 after losing 850,000 bitcoins. Now, as part of its bankruptcy proceedings, the exchange is finally starting to repay customers.

This includes around 140,000 BTC in Japan and 50,000 BTC in Germany. At current prices, that's over $8 billion in BTC and around $2.5 billion in BCH.

As these bitcoins hit the market, many of the customers who are finally getting their crypto back after nearly a decade will likely want to sell at least some of it. This could place further downward pressure on bitcoin prices.

Bitcoin prices have been volatile in recent months, and the sell-off from Mt. Gox customers could exacerbate the downturn. However, the technicals in bitcoin are still showing some strength.

On the 1-year chart, bitcoin has been able to hold above key support levels despite making lower lows. This bullish price action has yet to fully translate into the technicals, which is why we've seen a lot of choppiness in the markets.

With the Federal Reserve widely expected to cut or pause rate hikes in 2024, that could help risk assets like bitcoin. A Dovish pivot from the Fed has historically been bullish for bitcoin.

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