As a long-term crypto investor with experience in the market since its early days, I’ve witnessed my fair share of ups and downs. The recent announcement regarding Mt. Gox repayments has left me feeling a mix of emotions. On one hand, it represents a step towards closure for those affected by the infamous hack, but on the other hand, it brings new selling pressure to an already bearish market.
On June 24th, I came across information that the Mt. Gox rehabilitation trustee had released a letter concerning creditor repayments, set to begin in July 2024.
“I’ve been getting ready to make Bitcoin and Bitcoin Cash payments as part of the Rehabilitation Plan, overseen by the Rehabilitation Trustee.”
The move comes after extensive preparations to ensure safe and compliant repayments, it added.
Mt. Gox Repayments
The procedure included implementing technical security measures, complying with different financial authorities’ rules, and conferring with cryptocurrency trading platforms, as stated in the letter.
Repayments will be made through trading platforms, starting with those that have completed the necessary information exchange and confirmation process with the Trustee. Creditors were advised to wait patiently as the repayments in BTC and BCH were processed.
As a researcher studying the history of cryptocurrencies, I can tell you that in the year 2014, Mt. Gix, a prominent Bitcoin exchange at the time, suffered a significant setback when it was hacked. During this breach, an estimated 850,000 Bitcoins were stolen, equivalent to around $460 million based on the value of Bitcoin at that moment.
As a crypto investor, I’ve noticed that some larger creditors of the bankrupt crypto exchange opted for receiving their recovery payouts in Bitcoin (BTC) instead of fiat currency. This means they’ll receive a larger amount of BTC now, rather than waiting for their share in fiat currency at a later date.
Further analysis conducted on the blockchain revealed significant Bitcoin transactions linked to Mt. Gox towards the end of May. A word of caution was issued, as these transactions might lead to increased selling in the Bitcoin market.
As a researcher studying the cryptocurrency market, I’ve noticed with growing apprehension that an influx of Bitcoin has recently hit exchanges where sentiment is already turning bearish.
Germany is dumping $3B and now MtGox is dumping $9B Bitcoin.
— Charles Edwards (@caprioleio) June 24, 2024
Bitcoin pioneer Kyle Chassé expressed his worry aloud, saying, “Oh no, over $9 billion in Bitcoin transactions to be processed.”
MASSIVE Mt. Gox Distribution Incoming!
Here’s the breakdown of the figures:…
— Kyle Chassé (@kyle_chasse) June 24, 2024
Analyst Don Alt advised caution when trading with further losses expected.
It will be intriguing to observe the market response following the Mt. Gox announcement. The bulls must demonstrate substantial power to halt this gradual decline. Should they fail, the floor price could give way.
Impact on BTC
As a researcher studying the Bitcoin market, I’ve observed that miners have been selling an unprecedented amount of Bitcoin recently. In June alone, they offloaded over 30,000 BTC, equating to approximately $2 billion in value. This represents the highest monthly selling volume this year, resulting in a significant decrease in their reserves, bringing them down to a 14-year low according to analyst Carl B Menger.
Newsworthy: Over 30,000 Bitcoins, worth approximately $2 billion, were offloaded by miners last month, marking the largest sale volume for the year and bringing their holdings to a 14-year minimum.
Smaller Bitcoin miners have been forced to sell their Bitcoins due to reduced profits following the latest halving event.
— Carl ₿ MENGER (@CarlBMenger) June 24, 2024
“According to analyst ‘Titan of Crypto’, Bitcoin is nearing a point where some may choose to abandon their investments during this market cycle, as stated in a recent post on platform X on June 24.”
The announcement caused Bitcoin’s price to plummet to $61,000, exacerbating the 4.6% decrease experienced over the previous 24 hours.
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2024-06-24 13:29