Investing.com– Bitcoin fell on Monday on lingering concerns about the distribution of now-defunct cryptocurrency exchange Mt. Gox, which also soured sentiment in the broader cryptocurrency market.

However, the world’s largest cryptocurrency found some support near the $55,000 level after falling to its lowest level in over four months on Monday. It fell 3.8% in the past 24 hours to $55,450.3 as of 01:25 ET (05:25 GMT).

The token and the broader cryptocurrency space have seen little support from the weakening dollar, with reports indicating that holders of gigantic Bitcoin wallets have also begun accumulating funds for a potential sale.

Bitcoin crashed as Mt Gox distribution began

The trustees of the now-defunct cryptocurrency exchange Mt Gox said they have begun distributing tokens to customers affected by the 2014 hack.

While the custodians did not disclose the value of the withdrawals, earlier this year it was reported that wallets linked to the exchange had transferred around $9 billion worth of Bitcoin.

Traders have been dumping Bitcoin out of fear that token recipients will be largely incentivized to sell their holdings, given Bitcoin’s massive price run-up over the past decade. Such a scenario creates massive selling pressure on the token.

Over the past few weeks, several “whale” Bitcoin wallets have been spotted coming online to potentially sell their holdings, while the flow of funds into cryptocurrency investment products has also largely dried up.

Cryptocurrency Price Today: Altcoins Track Bitcoin Losses, Rate Signals in Focus

In the broader cryptocurrency market, major altcoins have largely followed bitcoin’s keen decline in price.

The world’s second-largest token fell 4.1% to $2,906.21. It was the first time since May that the token had fallen below $3,000.

and fell by 4%-7%, while meme tokens lost 6.6% and 4.6%, respectively.

Bitcoin selling pressure has spilled over to major altcoins, given that the token typically acts as a symbol for the cryptocurrency industry.

As such, cryptocurrency prices have largely ignored recent weakness in , amid growing optimism about interest rate cuts from the Federal Reserve. That trend has sent Wall Street to record highs.

And it is set to give more guidance on interest rates this week. Key US inflation data is also due.