Most of the Bitcoin being repaid by defunct exchange Mt. Gox will likely be sold, threatening to cause more downside pressure on the price of Bitcoin. <\/p>\n
The Mt. Gox repayments could add $8.2 billion worth of additional selling pressure to the Bitcoin (BTC) price, according to finance analyst Jacob King. <\/p>\n
The analyst said that onchain movements already point to the fact that Mt. Goxs creditors have started selling. King wrote in a July 4 X post: <\/p>\n
The gloomy prediction comes hours after Mt. Gox began repaying its debts in Bitcoin and Bitcoin Cash (BCH), the collapsed crypto exchange announced on July 5. <\/p>\n
Related: Ether ETFs will only be a sidekick to Bitcoin ETFs Bloomberg analyst <\/p>\n
The predictions raise concerns about the price of Bitcoin, which has been struggling to gain traction for over a month and is currently trading above the $60,000 psychological mark. <\/p>\n
Bitcoin has been in a downtrend for the entire month of June, logging a nearly 18% loss during the second quarter of 2024. <\/p>\n
However, the market selling by Mt. Goxs creditors could potentially take Bitcoin back into bear market territory, according to the analyst: <\/p>\n
The Bitcoin price fell 3.9% in the 24 hours leading up to 10:17 am UTC on July 5 to trade at $55,250. The worlds first crypto is down over 10% on the weekly chart, according to CoinMarketCap data. <\/p>\n
Despite the potential selling pressure, the repayments are a positive development for the industry and the defunct exchanges users. This sentiment is echoed by Mark Karpels, the former CEO of Mt. Gox, who highlighted this in a July 5 X post: <\/p>\n
Despite the potential selling pressure, the repayments come as a positive for the industry and the exchanges defunct users, as also highlighted by Mark Karpels, the former CEO of Mt. Gox. He wrote in a July 5 X post: <\/p>\n
Related: Justin Sun offers to buy German govts $2.3B Bitcoin stack to minimize market impact <\/p>\n
More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors who have been waiting for over 10 years to recover their funds. <\/p>\n
Considering that the Bitcoin price increased by over 8,500% during the past 10 years, the majority of defunct creditors will likely look to lock in some profits. <\/p>\n
This is partly why King also expects around 99% of the creditors to sell their BTC. He wrote: <\/p>\n
Magazine: Could a financial crisis end cryptos bull run? <\/p>\n
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Up to 99% of Mt. Gox's $8.2B Bitcoin could be sold Analyst - Cointelegraph<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Most of the Bitcoin being repaid by defunct exchange Mt. Continue reading