Bitcoin’s valuation plummeted to a four-month nadir of $53,499 on Coinbase as the latest cold wallet transfer from Mt. Gox reverberated through the market.

At approximately 4:19 am UTC on July 5, Bitcoin (BTC) experienced a significant drop, hitting its lowest point since late February, as per TradingView data. Concurrently, cryptocurrency liquidations have escalated to $664.5 million within the past 24 hours, marking the highest figure in two months, according to CoinGlass.

Bitcoin has marginally rebounded to $54,300, reflecting a decline of approximately 7.4% over the past day.

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Other major cryptocurrencies, such as Ether (ETH) and Solana (SOL), have also endured nearly 10% losses in the same timeframe. ETH dipped to $2,898, falling below the critical $3,000 mark it had maintained since mid-May, based on Cointelegraph Markets Pro data.

The past 24 hours have witnessed crypto liquidations amounting to $584 million in long positions and close to $82 million in shorts, with long BTC positions comprising $222 million of the aggregate total.

Investor sentiment towards cryptocurrencies has waned, reaching its lowest ebb since January 2023. The Crypto Fear and Greed Index registered a score of 29 out of 100 on July 5, indicating a market in a state of “Fear.”

Market participants are jittery about potential selling pressure emanating from $8.5 billion in Bitcoin creditor paybacks by the defunct crypto exchange Mt. Gox. On July 5, Mt. Gox transferred 47,229 BTC, valued at around $2.6 billion, to a new address, marking its first substantial move since May.

Read more: Crypto Liquidations Skyrocket to $580M Amid Bitcoin’s 8% Tumble, Altcoins Follow Suit

Adding to the market strain, the German government has sold 7,583 BTC worth $419.5 million since June 19. It still retains 42,274 BTC, equivalent to roughly $2.3 billion.

On July 4, Markus Thielen, an analyst at 10x Research, projected that Bitcoin could descend to as low as $50,000 due to the ongoing selling pressure on the cryptocurrency.