Bitcoin Suffers Major Sell-off as Defunct Mt. Gox Announces Repayment Plans

Fears rose that investors may quickly liquidate Mt. Gox's repayment, which includes using $2.71 billion in Bitcoin, and, in turn, drive down the cost.

UPI, July 5 (UPI) -- Cryptocurrencies -- including the king of digital currency, Bitcoin -- suffered a major sell-off this week that extended to Friday with the defunct Mt. Gox announcing its repayment plans.

Fears rose that investors may quickly liquidate Mt. Gox's repayment, which includes using $2.71 billion in Bitcoin, and, in turn, drive down the cost. And that is what has fueled the sell-off, according to Forbes.

Mt. Gox went belly up in 2014 but recently emerged with a plan to repay creditors.

Bitcoin value has fallen nearly 24% in the past week while Bitcoin Cash, which also is being used by Mt. Gox, went into a 25% nosedive.

Because of Bitcoin's continued dominance in the cryptocurrency industry, many other digital assets were negatively affected by the fall. Ether, the second most popular cryptocurrency, lost nearly 5% after tumbling 9% in earlier trading on Friday.

In fact, according to CoinDesk, the top cryptocurrencies showed losses on Friday and for the past week.

For Bitcoin, the fall in value to $57,000 is its lowest since Feb. 28, and it appears the decline may not be completely done.

"Bitcoin closing below $57,000 could spell trouble, with potential support only at $51,000," crypto analyst Ali Martinez told Yahoo Finance.

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