Mt. Gox Repayments Begin: Market Impact on Bitcoin
Short-term volatility caused by Mt. Gox refunds $BTC
Marks a significant event in the cryptocurrency world as the long-awaited repayments to Mt. Gox creditors commence. Mt. Gox, once the largest Bitcoin exchange, collapsed in 2014 after multiple hacks led to the loss of over 850,000 BTC, worth more than $51.9 billion today.
The repayment to approximately 127,000 creditors comes after a decade-long wait.
Repayment Details:
Start of Repayments: Early July 2024, creditors will begin receiving repayments in Bitcoin $BTC and Bitcoin Cash. Amount to be Distributed: Approximately 140,000 BTC are expected to be distributed, potentially increasing selling pressure in the market. Analysts predict that around 95,000 BTC might actually be released initially due to tax implications and creditors' reluctance to sell immediately.
Impact on Bitcoin Price
Since the announcement of the repayments, Bitcoin's price has seen notable fluctuations. Recently, Bitcoin's price dropped from over $62,300 to about $60,500, reflecting a decrease of more than 5% in the past 24 hours.
