Mt. Gox Bitcoin movement sparks sell-off, pushing BTC below $55k

Mt. Gox very recently transferred approximately 47229 Bitcoin to another cryptocurrency wallet address. Bitcoin’s price sharply decreased over the last 24 hours, and the now defunct cryptocurrency exchange Mt. Gox moved Bitcoin worth $2.71 billion from cold storage to an address. Crypto enthusiasts are keeping an eye on payout updates from Mt. Gox and endeavors from the American and German governments.

America and Germany are the biggest state holders of Bitcoin. Mt. Gox announced that it will begin distributing funds totaling $9 billion in Bitcoin, Bitcoin cash, and fiat currency to lenders. The list of Mt. Gox creditors includes claim funds, inactive crypto exchange Bitconica, and individual creditors. 

The Mt. Gox payout is a major reason behind Bitcoin’s recent sluggish performance, and Bitcoin’s price will decline in the coming days, too. Although lenders will sell off their Bitcoin from Mt. Gox, the selling pressure might not be as big as anticipated. Bitcoin is the biggest liquid digital asset market that can consume the selling pressure, and there is still demand for cheap prices in the short run.

It is estimated that Bitcoin Cash’s selling pressure is stronger than Bitcoin’s. Mt. Gox creditors will sell some of their Bitcoin receivables, and a recovery from the present situation is expected by August 2024. Mt. Gox was the biggest Bitcoin exchange in the world until it underwent a major security breach in 2014. 

Mt. Gox’s repayment to creditors might indicate a further dip in Bitcoin prices. The shifting of Bitcoin has ignited market concerns, and the increased selling pressure on Bitcoin prices is evident in the cryptocurrency market.

The long-anticipated Mt. Gox repayments have started now, which has created confusion in the cryptocurrency market. The recent move is part of the exchange’s efforts to repay its creditors, who have been waiting for a very long time. 

The latest Bitcoin transfers undertaken by Mt. Gox are substantial, with the most recent transfer of 2702 Bitcoin to new addresses. These recent developments are synonymous with Mt. Gox’s plan to start creditor repayments in July 2024. The repayment strategy was acknowledged by Mt. Gox and trends like these often lead to increased volatility.

Substantial transfers like the one mentioned above cause anxiety among the investor community, and the timing of the latest developments coincides with the launching of repayments to lenders. According to a top official at Mt. Gox, the repayments will be made in Bitcoin and Bitcoin Cash. 

Advertisement

The process is inclusive of multiple conditions like validation of accounts and agreements with crypto exchanges. He assured that repayment to creditors will continue as long as they are safe and stable. The start of repayment led to a mixed market sentiment, and few investors were skeptical about a potential selloff. The currency cryptocurrency market crash is fueled by the expectation of extra Bitcoin sales.

Harsh Chauhan

Harsh Chauhan is an experienced crypto journalist and editor at CryptoNewsZ. He was formerly an editor at various industries and has written extensively about Crypto, Blockchain, Web3, NFT and AI. Harsh holds a Bachelor of Business Administration degree with a focus on Marketing and a certification from the Blockchain Foundation Program. Through his writings, he hold the pulse of rapidly evolving crypto landscape, delivering timely updates and thought-provoking analysis. His commitment to providing value to readers is evident in every piece of content produced.

Related Articles

Back to top button