The anticipated Bitcoin spending of the now dissolved exchange Mt. Gox has exerted significant selling pressure, leading to further decline in the BTC price.
Financial analyst Jacob King estimates that these payments may introduce around $8.2 billion into the Bitcoin market, primarily through sales. On-chain data shows that Mt. Gox’s creditors have begun sales. Mt. Gox Redemptions have started liquidating their #Bitcoin holdings! Subsequently, on-chain data indicates a significant increase in the volume of these wallets being sold.
While no Bitcoin enthusiast is likely to admit it, most of the $8.2 billion dollars… pic.twitter.com/VWcxBc43Sk — Jacob King (@JacobKinge) July 4, 2024
This development has raised concerns about the stability of Bitcoin prices, which have been struggling, trading just above the $55,000 mark, marking a 20% loss in the second quarter of 2024.
King recommends creditors of Mt. Gox to sell in the market. Due to the currently low demand, Gox might push leading cryptocurrencies back into a bear market.
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Cryptocurrency market cap dips below $X trillion for the first time since February Despite potential impacts on the market, this compensation is seen as a positive step for the industry and users of defunct exchanges. Former CEO Mark Karpeles expressed relief that clients have finally received their Bitcoin after over a decade of waiting.
Approximately 127,000 creditors are eyeing Bitcoin assets worth over $940 million. Given the significant increase in cryptocurrency values over the past decade, many are expected to sell assets to lock in profits.
King anticipates that up to 99% of creditors will sell their held Bitcoin, leading to a gradual outflow of several billion dollars over the coming weeks. 