Bitcoin is expected to get its worst week in months this week

On Friday, bitcoin fell to a one-month low, putting it on track for its worst week in six months, as traders cashed in on a long rally and feared that creditors of the defunct crypto exchange Mt Gox would be forced to liquidate their payments.

Bitcoin, the most valuable cryptocurrency by market capitalization, had dropped 1.6 % to $55,980 by mid-session in Asia, its lowest since mid-October and 20% below last week’s record high.

“Selling pressure has been quite constant,” said Matthew Dibb, chief operating officer of Stack Funds, a Singapore-based crypto asset manager, who believes it will proceed till the token finds support around $53,000.

This week, Bitcoin has lost 14% and has broken through its 50-day moving average. It has increased by more than 90% this year.

After a Tokyo court-approved plan to repay the creditors of Mt Gox, a crypto exchange that collapsed in 2014 after losing half a billion dollars in bitcoin, Dibb stated that there was profit-taking and concern about more selling.

He predicted that those who are affected will receive a large amount of bitcoin in the first or second quarters of 2022, assuming that the creditors are likely to be sellers. This has caused some market concern over a longer time horizon.

On Friday, Ether, the second most valuable cryptocurrency by market capitalization, remained steady near a three-week low of $4,014 but was on track for a weekly loss of 14%.

Both ether and bitcoin appear to have suffered as international markets have become more cautious in recent months, citing concerns about economic growth, interest rates, and inflation.

Bitcoin’s long-term outlook, according to OANDA analyst Edward Moya, remains bullish.