After five years of silence, the Mt.Gox address transferred a large amount for the first time. Will 140,000 BTC crash the market?

Yesterday morning, Mt.Gox-related addresses, which had been dormant for 5 years, began to continuously transfer large amounts of Bitcoins, ranging from a few thousand to tens of thousands. Mt.Gox currently has 141,680 BTC in stock, worth nearly 10 billion U.S. dollars. The market has begun to worry about the possible risk of selling pressure, and BTC has also dropped from the lowest price of 69,400 USDT at 9 a.m. yesterday to 67,500 USDT.

The Mt.Gox incident is finally coming to an end. What impact will it have on the market? Odaily will analyze it in this article.

Details of the compensation plan

The first is the question that users are most concerned about: Is Mt. Gox transferring tokens after many years to sell?

Mt.Gox confirmed the batch of transfers was to prepare for an Oct. 31 creditor repayment deadline, according to documents released by Mt.Gox. According to its filing, the Rehabilitation Trustee is preparing to reimburse the portion of the claim for the distribution of cryptocurrency. There are two options for claiming compensation: Option 1 is to repay BTC and BCH to creditors on a designated exchange, and Option 2 is to sell the tokens and then repay them. According to Cointelegraph, the recovery trustee has not yet made clear what compensation plan will be followed.

Previously on April 21, Reddit users reported that Mt. Gox claimants found that the claim form had been updated, adding fields such as the expected number of tokens to be retrieved, and BCH and BTC symbols are displayed. In January this year, some creditors received emails asking them to confirm their account information, and were reminded that if their accounts are disabled or frozen in the future, they may not be able to receive BTC/BCH repayments. This suggests that Mt.Gox is at least moving towards BTC payments in some way, rather than just working on fiat payments, but most users see no connection between updating the form and paying compensation.

It can be concluded here that BTC does face the risk of selling pressure from Mt. Gox, but whether it will choose this option and the specific sales ratio is currently unknown.

How is the selling pressure?

Mt.Gox transferred a total of 141,680 BTC to multiple addresses. Users can check the details in the Odaily report, but the total selling volume is not known as mentioned in the previous section. Alex Thorn, director of research at Galaxy Digital, said: "I personally expect that most Bitcoin will be held, but I can't say the same about BCH. Not all tokens will be sold."

In terms of sale time, Mark Karpelès, the former CEO of Mt. Gox, posted on the Bitcoins will be sold immediately. "The official final repayment deadline is October 31, 2024, which is still a long time away.

In addition, in terms of sale details, according to the official announcement of Mt.Gox in January 2023, the repayment plans provided by Mt.Gox are divided into two categories, namely "Base Repayment" and "Proportional Repayment" "(Proportional Repayment) part, the amount of the basic repayment part is the same, and the proportional repayment part provides creditors with two options, namely "mid-term repayment and terminal repayment" or "early one-time repayment". In other words, if you choose to sell the tokens, it is not a quick sell-off in a short period of time. It can be understood as another form of selling pressure on GBTC, which will be sold in batches over a longer period of time.

Conclusion

To sum up, we can conclude that Mt.Gox’s token transfer action represents the potential of token selling pressure to a certain extent, but the final plan has not yet been determined. , but even if the sale plan is chosen, it will be digested over a long period of time, and it is difficult to directly cause a market flash crash.

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