Bitcoin Bitcoin
-7.36%
The price fell below $57,000 after the cryptocurrency exchange Mt Gox closed on Thursday night. Almost 47,229 BTC moved (USD 2.71 billion) was transferred to another wallet address.
The largest cryptocurrency fell 3.45% over the last 24 hours to trade at $56,851. Bitcoin price page on the blockAt approximately 8 p.m. ET, the now-defunct cryptocurrency exchange Mt Gox moved $2.71 billion worth of bitcoin from cold storage to an address.
Cryptocurrency traders are watching Mt Gox’s payment updates closely. Movements made by the US and German governmentsIt is one of the countries with the largest holdings of Bitcoin.
In late June, the shuttered Bitcoin exchange said: Start distribution Since early July, it has paid out more than $9 billion to creditors in Bitcoin, Bitcoin Cash, and fiat currency. That’s about 142,000 Bitcoins ($8 billion), 143,000 Bitcoin Cash ($45.9 million), and 69 billion yen ($428.7 million) worth of fiat currency.
Peter Chung, head of research at Presto Research, said Mt Gox creditors consist primarily of claims funds, closed cryptocurrency exchange Bitcoinica, and individual creditors. “We think they are mostly hardcore BTC investors with diamond hands, so there will be limited selling,” Chung told The Block.
“The LPs of the claims fund (e.g. Fortress) are wealthy Bitcoin OGs who want to accumulate more at a discount. Bicoinica can’t do anything with the assets until it goes through its own bankruptcy process,” Chung added. “The current group of retail investors are the diamond hands because they resisted aggressive bids from the claims fund for the past 10 years. The weaker creditors had plenty of opportunities to get out, and probably all of them did.”
sales pressure
The Mt Gox payout has been cited as a major reason for Bitcoin’s recent downturn. Some Experts predicted With 142,000 BTC supplied to the market, the Bitcoin price is expected to continue to decline as selling pressure builds on traders.
“While it is likely that creditors will sell their BTC on Mt Gox, the selling pressure may not be as strong as many expect, as creditors were able to sell their claims earlier in the bankruptcy claims market,” said Nick Luck, head of growth at BitU Protocol. “Bitcoin is probably the most liquid digital asset market to absorb this pressure, and there is still demand for lower prices in the short term as many expect a sustained bull market in the long term.”
Presto’s Chung said the Mt Gox redemption is expected to occur between July and October, adding: “So we can use that as a reference point when we judge how long the selling pressure will last.”
“However, since BCH does not have a strong investor base like BTC, the selling pressure on BCH will be stronger than on BTC, so lenders will want to cash out immediately, just like with any other airdrop. Moreover, the market liquidity is much thinner than on BTC — just 1/50th,” Chung said. “By our estimates, the selling pressure on BCH (measured as a percentage of the average transaction value) will be four times greater than on BTC.”
JP Morgan analyst I told you last week They said they expect Mt Gox bondholders to sell some of their bitcoin bonds, which would put pressure on the market. Nevertheless, analysts said they expect a recovery starting in August.
Founded in 2010, Mt Gox operated the world’s largest Bitcoin exchange until a major security breach on its platform in 2014 resulted in the loss of at least 850,000 Bitcoins.
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