Bitcoin

Most of the Bitcoin being repaid by defunct exchange Mt. Gox will likely be sold, threatening to cause more downside pressure on the price of Bitcoin.
The Mt. Gox repayments could add $8.2 billion worth of additional selling pressure to the Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) price, according to finance analyst Jacob King.
The analyst said that onchain movements already point to the fact that Mt. Gox’s creditors have started selling. King wrote in a July 4 X <a href="https://x.com/JacobKinge/status/1808945903006536021" target="_blank" rel="noopener nofollow">post</a>:
<blockquote data-ct-non-breakable="true">
 “No Bitcoiner will say this out loud, but the majority of the $8.2 Billion in $BTC that is set to be distributed back to ex-clients are going to be sold off.”
</blockquote>
The gloomy prediction comes hours after <a href="https://cointelegraph.com/news/mt-gox-repayments-bitcoin-bitcoin-cash">Mt. Gox began repaying</a> its debts in Bitcoin and Bitcoin Cash (<a href="https://cointelegraph.com/bitcoin-cash-price-index">BCH</a>), the collapsed <a href="https://cointelegraph.com/learn/centralized-vs-decentralized-crypto-exchanges">crypto exchange</a> announced on July 5.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/4b3182c8-1388-4ee9-8e50-8d5b97512a77.jpg" alt="" title="">
 <figcaption style="text-align: center;">
 Mt. Gox BTC distribution preview. Source: Jacob King
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/ether-etfs-sidekick-bitcoin-etfs-bloomberg-analyst">Ether ETFs will only be a ‘sidekick’ to Bitcoin ETFs — Bloomberg analyst</a>
<h2 data-ct-non-breakable="true" id="will-mt-gox-send-bitcoin-back-into-bear-market-territory">Will Mt. Gox send Bitcoin back into bear market territory?</h2>
The predictions raise concerns about the price of Bitcoin, which has been struggling to gain traction for over a month and is currently trading above the $60,000 psychological mark.
Bitcoin has been in a downtrend for the entire month of June, logging a nearly 18% loss during the second quarter of 2024.
However, the market selling by Mt. Gox’s creditors could potentially take Bitcoin back into bear market territory, according to the analyst:
<blockquote data-ct-non-breakable="true">
 “I understand this is controversial, but based on the current low demand volume, this will easily send BTC back into a harsh bear market.”
</blockquote>
The Bitcoin price fell 3.9% in the 24 hours leading up to 10:17 am UTC on July 5 to trade at $55,250. The world’s first crypto is down over 10% on the weekly chart, <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener nofollow">according</a> to CoinMarketCap data.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/e1930969-b8f2-459f-8347-60e933968b41.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USDT, 1-month chart. Source: CoinMarketCap
 </figcaption>
</figure>
Despite the potential selling pressure, the repayments are a positive development for the industry and the defunct exchange’s users. This sentiment is echoed by Mark Karpelès, the former CEO of Mt. Gox, who highlighted this in a July 5 X post:
Despite the potential selling pressure, the repayments come as a positive for the industry and the exchange’s defunct users, as also highlighted by Mark Karpelès, the former CEO of Mt. Gox. He wrote in a July 5 X <a href="https://x.com/MagicalTux/status/1809160135211975098" target="_blank" rel="noopener nofollow">post</a>:
<blockquote data-ct-non-breakable="true">
 “Mt. Gox customers have finally started receiving Bitcoins! After over 10 years I wasn’t sure anymore if it’d finally happen, but here we are finally!! This has been a long journey and I’m happy to see we’re finally getting there, only a bit more.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/justin-sun-offers-buy-german-government-bitcoin">Justin Sun offers to buy German gov’t’s $2.3B Bitcoin stack to minimize market impact</a>
<h2 data-ct-non-breakable="true" id="up-to-99-of-mt-gox-creditors-could-be-selling-according-to-the-analyst">Up to 99% of Mt. Gox creditors could be selling, according to the analyst </h2>
More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors who have been waiting for over 10 years to recover their funds.
Considering that the Bitcoin price increased by over 8,500% during the past 10 years, the majority of defunct creditors will likely look to lock in some profits.
This is partly why King also expects around 99% of the creditors to sell their BTC. He wrote:
<blockquote data-ct-non-breakable="true">
 “I’d say 99% of those on Mt. Gox are going to sell their coins the moment they get it. Imagine billions worth of Bitcoin all being dumped gradually over the next several weeks. There is no way to spin this to be bullish, or news that could offset this.”
</blockquote><iframe width="100%" height="315" src="https://www.youtube.com/embed/5aNlhB6O3V8" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen data-ct-non-breakable="true"></iframe>
<figcaption style="text-align: center;">
 The Mt. Gox scam and Japanese crypto regulation | Cointelegraph Documentary. Source: Cointelegraph
</figcaption>
Magazine: <a href="https://cointelegraph.com/magazine/financial-crisis-end-crypto-bull-run/">Could a financial crisis end crypto’s bull run?</a>

Up to 99% of Mt. Gox’s $8.2B Bitcoin could be sold — Analyst

Table of Contents

Cointelegraph

Alte articole publicate pe 5 iul. 2024

Justin Sun: Is He the superhero savior of Bitcoin?

Investors Eye Qubetics Whitelist Amid Troubles in Paradise for Aave and SingularityNET

Top Crypto Gainers Today Jul 05 – Enzyme, Cream Finance, SafePal, Beldex

PawFury (PAW) Crypto’s Presale Predicted To Reach $1, Luring Investors Away From Hedera and Slothana

Top Presale Tokens with 100X Returns in 2024: Render (RNDR), Immutable (IMX), and PAWFURY (PAW)

CORE, SEI, and Notcoin’s NOT Prices Crash – Here’s Why

Join our free newsletter for daily crypto updates!