Bitcoin Cash faces potential 24% crash as Mt. Gox starts repayments

Bitcoin Cash has dropped below the weekly support level of $378.6, marking a 20% decline this week. Currently trading around $310, marking a 6% decline on the day. Trustee Nobuaki Kobayashi's announcement of Mt. Gox's repayment plan in early July, coupled with the movement of 47,229 BTC worth $2.71 billion on Friday, indicates market fear, uncertainty and doubt (FUD) that could potentially lead to a decline in BCH prices in the coming days.

Mt. Gox confirms Bitcoin, Bitcoin Cash repayments have begun

According to Arkham Intelligence, Mt. Gox recently transferred 47,229 BTC valued at $2.71 billion from the cold wallet 1HeHL. Of this, 2701.8 BTC worth $148.4 million was moved out of Mt. Gox wallets, with 1544.7 BTC worth $84.9 million sent to Bitbank via Mt. Gox address 1PKGG, and 1157.1 BTC ($63.6M) sent to an unknown counterparty bc1qkjc, likely an exchange handling repayments.

The Mt. Gox address 16ArP still holds 44,527 BTC. Including the BTC held in 16ArP, Mt. Gox wallets collectively contain 138,985 BTC worth $7.52 billion.

These movements are likely associated with the Mt. Gox repayments plan recently announced by Trustee Nobuaki Kobayashi.