Bitcoin (BTC) Takes a Back Seat as Ethereum (ETH) ETF Launch Nears, Mt.Gox Repayment Plan Blamed

The year 2024 was considered one of the luckiest years for Bitcoin [BTC], especially with the Bitcoin ETF launch, reaching a new all-time high of $73K.**

**Bitcoin**[**BTC**] began **2024** on a high note, especially after a **Bitcoin ETF** was launched. Moreover, **BTC** reached a new all-time high of **$73K, and the Bitcoin halving event was anticipated.

However, the crypto community prepared for the full and final approval of the spot Ethereum[ETH] ETF in July, and BTC seemed to have taken a backseat. At the time of writing, while ETH surged by 1.58% in the past 24 hours, BTC was flashing red candlesticks on its daily charts trading at $61K.

Many are blaming the Mt. Gox repayment plan for Bitcoin's decline, but Alex Thorn, Head of Firmwide Research at Galaxy Digital, offered a different perspective. According to Thorn, Bitcoin Cash[BCH] was affected more. Expanding on his viewpoint, he took to X (formerly Twitter) and said,

Here, Thorn is referring to a massive hack that Mt. Gox suffered in 2014, resulting in the loss of 740,000 BTC (now valued at $15 billion). The repayments, which will be made in Bitcoin and BCH, are set to begin in July 2024. This could increase selling pressure on these cryptocurrencies as creditors will receive and potentially sell off their newly acquired assets.

To keep an eye on this situation, many execs suggested relying on Bitcoin exchange balances as a reliable indicator of Bitcoin's price strength. However, in a recent post on X, popular commentator Matthew Hyland criticized the significance of decreasing exchange supply by calling it “overrated.” He elaborated,

Well, it’s important to note that it’s not the first time Mt. Gox has done such a thing. Besides Mt. Gox, Gemini also announced its plan to reimburse users impacted by their discontinued Gemini Earn program. The founders took to X (formerly Twitter) and highlighted that on the 29th of May, Earn users received $2.18 billion in digital assets.

Moreover, FTX, a crypto exchange that underwent bankruptcy proceedings last year, also unveiled its plan to settle its debts. However, the impact of these repayments on market sentiment may differ from other creditor settlements, according to analysts from K33 Research. FTX intends to execute cash-based repayments, while other entities like Mt. Gox and Gemini plan to repay creditors with cryptocurrencies.

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