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The Bitcoin price<\/a> plunged this week, sinking below $55,000 for the first time since February as the now-defunct Mt Gox exchange began distributing billions in owed funds.<\/p>\n Mt Gox announced<\/a> it has started repaying creditors, ending years of waiting stemming from its 2014 collapse. The Japan-based exchange will distribute approximately $9 billion worth of Bitcoin, Bitcoin cash, and fiat currency.<\/p>\n The news added heavy selling pressure on Bitcoin, which fell over 6% on Friday to trade near $54,000. The broader Bitcoin and crypto market shed over $170 billion in 24 hours amid the declines.<\/p>\n On Thursday evening, Mt Gox<\/a> moved around 47,000 Bitcoin worth nearly $2.7 billion from cold storage wallets to a separate address<\/a>. While intentions remain uncertain, the transfer fueled concerns creditors may sell portions of recovered coins.<\/p>\n The payouts come after protracted bankruptcy proceedings for Mt Gox, which suffered a massive hack in 2014 that resulted in 850,000 Bitcoin being lost. It was the largest crypto exchange at the time, handling 70% of all Bitcoin transactions.<\/p>\n The repayment of creditors marks a major step toward resolving Mt Gox’s decade-long insolvency case. However, the influx of previously lost coins threatens to shift supply and demand dynamics.<\/p>\n Some analysts estimate selling pressure from payouts could push Bitcoin’s price as low as $50,000 in the near term. Ongoing transfers from the German government<\/a> have also weighed on the market.<\/p>\n However, others argue the amounts equate to a small fraction of daily Bitcoin trading volumes. They say most creditors are long-term investors unlikely to dump holdings en masse, limiting impacts.<\/p>\n Nonetheless, analysts widely expect significant volatility ahead between Mt Gox distributions and the start of German government sales in July.<\/p>\n