Mt. Gox Officially Repays BTC and BCH Debt - Bitcoin Price Hovering Around $54,000, $680 Million Liquidated
Mt. Gox Officially Repays BTC and BCH Debt - Bitcoin Price Hovering Around $54,000, $680 Million Liquidated
The recent announcement by Mt. Gox on July 5th marks the official repayment of BTC and BCH to users, further dampening market sentiment in a negative direction.
In recent days, the "Mt. Gox ghost" has exerted significant pressure on the crypto market, causing apprehension within the community about the impending massive sell-off of assets.
*MT GOX BEGINS REPAYMENTShttps://t.co/HzdyREeUJB
— db (@tier10k) July 5, 2024
However, at the beginning of the afternoon on July 5th, 2024 (Vietnam time), Mt. Gox officially announced the commencement of BTC and BCH repayments.
Exactly a decade after the exchange was hacked in 2014, Mt. Gox's trustee will repay 142,000 BTC and 143,000 BCH to creditors.
According to the announcement, the exchange will transfer these assets to users' accounts on pre-selected trading platforms. Upon receiving BTC and BCH, users have the option to immediately sell them on the exchange, hold them, or withdraw them to personal wallets.
According to the Reddit, several users said that their Bitbank received BTC/BCH, and the amount received was exactly the same as the amount shown in the Mt Gox table. Today, MtGox transferred 1,544.67 BTC (about $84.87m) to the hot wallet of the Japanese exchange Bitbank through… pic.twitter.com/J9MCfYqtgi
— Wu Blockchain (@WuBlockchain) July 5, 2024
Many analysts express concern that users may opt to sell off their entire received coin holdings, potentially flooding the market with over $8 billion worth of Bitcoin, causing further substantial price declines.
On the social media platform Reddit, some Mt. Gox creditors have reported receiving their assets through the corresponding Bitbank platform, fulfilling the compensation requests previously submitted to the exchange. Mt. Gox transferred 1,544 BTC, equivalent to $84.8 million USD, to Bitbank on the same day.
However, there are also optimistic views suggesting that these creditors, mostly BTC whales, may choose to continue holding rather than selling at current prices. Therefore, Mt. Gox's impact on BCH prices might be more pronounced than on BTC.
Despite analysts' optimism, the market has already "sold the news" since the beginning of July. Particularly over July 4th and 5th, BTC lost nearly $10,000 in value, dropping to its lowest level in five months.
Currently, BTC is trading around $54,000 USD.
1-hour chart of BTC/USDT pair on Binance at 01:55 PM on July 5th, 2024
ETH has also faced a similar fate, dropping below the $3,000 mark and currently trading around $2,850 USD.
1-hour chart of ETH/USDT pair on Binance at 01:55 PM on July 5th, 2024
BCH recorded a more than 18% decrease in the past 24 hours, trading around $293 USD.
1-hour chart of BCH/USDT pair on Binance at 01:55 PM on July 5th, 2024
Within the last 24 hours, $680 million worth of orders were liquidated, with $590 million attributed to long positions.
Liquidation data within the last 24 hours. Screenshot from CoinGlass at 01:55 PM on July 5th, 2024
The current market conditions have heightened fears that the scenario of Bitcoin dropping to $50,000 USD, as indicated at the end of June, may now be more likely than ever.
