Bitcoin's value has dropped considerably in early trading on Friday, temporarily falling below the $54,000 mark.
This is its lowest level since late February, representing an 8.3% decrease since yesterday.
Bitcoin has been under pressure for weeks, having been priced at nearly $72,000 at the beginning of June.
The downward trend for crypto does not stop with Bitcoin.
According to Die Presse, other digital currencies, such as Ethereum, BNB, and Solana, also experienced losses.
As stated on Coinmarketcap.com, the market capitalization of all cryptocurrencies recently fell by over eight percent to $1.99 trillion.
Experts attribute the recent downturn to a statement from the insolvency administrator of the failed crypto exchange Mt.Gox.
The exchange announced plans to distribute a large number of Bitcoin tokens (BTC) to its creditors, who have been waiting for years for a refund of their coins.
This potential influx of BTC into the market could lead to an oversupply, driving prices down.
Background on Mt.Gox
After Mt.Gox collapsed in 2014, users lost a total of 850,000 BTC, of which 142,000 BTC were recovered and are now set to be returned to their owners.
Mt.Gox was once the world's largest trading platform for Bitcoin.
The 2014 bankruptcy, following a hack, triggered Bitcoin's first major crisis of confidence.
The behavior of former Mt.Gox customers remains uncertain. If many decide to sell their recovered BTC holdings quickly, it could flood the market with Bitcoin.
But market observers at Glassnode have not yet noted any major BTC transfers.
