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Bitcoin has plunged 8% over the past two days, is down 12% since the start of July, and is trading at its lowest level since February.
The sharp decline has been accompanied by a wave of selling by notable bitcoin holders, including the defunct Mt. Gox cryptocurrency exchange and the governments of Germany and the US.
Mt. Gox, which at one point was the largest cryptocurrency exchange, went bankrupt in February 2014 after a series of hacks stole nearly one million bitcoin from its customers.
A decade later, Mt. Gox on Friday has started to repay some of the $9 billion it owes to its creditors and customers via bitcoin and bitcoin cash, according to a statement from the company.
Cryptocurrency wallets tied to Mt. Gox show the defunct exchange still holds nearly 140,000 bitcoin that have yet to be repaid, according to data provider Arkham Intelligence.
Meanwhile, recent bitcoin transfers from wallets associated with the German and US governments suggest both are liquidating some of their bitcoin stash.
Arkham Intelligence said the German government sold up to $175 million in seized bitcoin on Thursday. The government still holds about 40,000 bitcoin worth more than $2 billion.
According to Blockworks, both the US and German governments have sent a combined $738 million to bitcoin exchanges over the last two weeks, suggesting that they will imminently be sold.
All of this selling pressure has sent the price of bitcoin below key technical support levels.
Bitcoin is trading below its 200-day moving average of around $59,500, suggesting more downside ahead.
Fairlead Strategies highlighted $60,000 as a key support level that has since been broken. The decisive breakdown puts bitcoin's next support level target at around $51,500.
