Mt. Gox’s $8.2B Bitcoin. The sale of the majority of the Bitcoin owed by the now-defunct Mt. Gox exchange might add to the downward pressure on the cryptocurrency’s price. Financial researcher Jacob King predicts that the $8.2 billion in additional selling pressure caused by the Mt. Gox repayments might push the price of Bitcoin BTC to $56,598 lower.
The expert has stated that on-chain movements indicate that Mt. Gox creditors have begun selling. No Bitcoiner will publicly admit it, but most of the $8.2 billion in bitcoins that are going to be returned to former customers are going to be sold, King said in a post on July 4th on X. Just hours after the failed cryptocurrency exchange Mt. Gox declared on July 5 that it would begin collecting its debtors in Bitcoin and Bitcoin Cash BCH $328, the bleak prognosis follows.
Will Mt. Gox Drop Bitcoin’s Price?
Predictions like these make many nervous about Bitcoin’s price, which has been flat for more than a month despite trading above the psychological barrier of $60,000. With a loss of approximately 18% in the second quarter of 2024, Bitcoin has been in a downturn for the entire month of June.
“I appreciate this is controversial, but based on the present low demand volume, this will easily drive BTC back into a hard bear market.” The expert says that market selling by Mt. Gox’s creditors might lead to Bitcoin falling back into bear market territory.
As of 10:17 a.m. UTC on July 5, the price of Bitcoin had dropped 3.9% in the previous 24 hours to $55,250. Data from CoinMarketCap shows that the first cryptocurrency in the world is down more than 10% weekly.
Mt. Gox’s $8.2B Bitcoin: Despite selling pressure, the repayments are good news for the business and those who used the now-defunct exchange. The former CEO of Mt. Gox, Mark Karpelès, shared this view and brought it to light in a post he made on July 5th:
Mark Karpelès, the ex-CEO of Mt. Gox, and others have pointed out that the industry and the exchange’s former users will benefit from the repayments, regardless of the possible selling pressure. “Mt. Gox customers have finally started receiving Bitcoins!” he stated in a post on July 5, X. I had given up hope that it would ever happen after waiting for over a decade, yet here we are at last! After all this time, I’m glad we’re almost there—if not yet.
The Expert Believes 99% of Mt. Gox Creditors May Sell
Around 127,000 debtors from Mt. Gox have been waiting for over a decade to get their money back, and it’s worth over $9.4 billion in Bitcoin. Most of the insolvent creditors will probably try to cash in on the 8,500% gain in Bitcoin’s value over the last decade.
King anticipates that nearly all of the creditors will liquidate their Bitcoin holdings for this same reason. “The vast majority of people on Mt. Gox will sell their coins as soon as they get them,” he stated. Suppose, over the course of the next few weeks, Bitcoin valued in the billions is quietly dumped. There is no positive angle from which to view this, and no news has emerged to counteract it.
