Mt. Gox Bitcoin Repayments May Be Beginning
- WBOYOriginal
- 2024-07-12 11:58:30973browse
Early today, three wallets historically linked to Mt. Gox executed three transactions. The most significant of these involved the transfer of $24 in Bitcoin (BTC) to a wallet
Mt. Gox is reportedly beginning the process of repaying creditors in Bitcoin, with a small amount of the cryptocurrency being transferred to an exchange.
Three transactions were executed from wallets linked to Mt. Gox on Monday morning.
The largest transaction saw BTC 0.0004, currently valued at $24, being moved from a Mt. Gox wallet to another wallet, which then sent the funds to Bitbank’s hot wallet.
As reported, Bitbank is one of the exchanges that have been authorized to facilitate creditor repayments, alongside Kraken, Bitstamp, SBI VC Trade, and Bitgo.
The exchange will then make the funds available to its customers over a period of up to 90 days from receipt.
However, there is some uncertainty surrounding these transactions, as the funds were not moved directly from the primary Mt. Gox wallets. Observers speculate whether this activity could be a preliminary test ahead of larger transfers intended for creditor repayment.
The Mt. Gox Rehabilitation Trustee has previously indicated that the repayment process was scheduled to commence from the beginning of July, although specific dates for the transfers have not been disclosed publicly.
The other two transactions saw one transfer of BTC 0.00004, currently valued at $3.00, and another of BTC 0.000004, currently valued at $0.32, being moved to a new wallet.
This subtle movement of funds occurs amidst a turbulent period for Bitcoin, which has seen its price plummet by more than 20% since reaching $72,000, now hovering around $57,700.
Peter Chung, Head of Research at Presto Research, recently provided insights into the broader implications of the Mt. Gox repayments.
He outlined the expected dynamics between Bitcoin (BTC) and Bitcoin Cash (BCH), predicting significant trading opportunities.
“The Mt. Gox’s Rehabilitation Trustee plans to distribute multi-billion dollars worth of BTCs and BCHs to the Mt. Gox creditors between July 1st and October 31st, 2024. This will likely alter supply/demand dynamics in BTC and BCH during this four-month period, potentially opening up a pair trading opportunity,” he stated.
Chung emphasized the disparate impacts on BTC and BCH: “Our analysis shows that the selling pressure for BCH will be four times larger than for BTC – i.e., 24% of the daily trading value for BCH vs. 6% of the daily trading value for BTC. This differential reflects varying investor bases, with BCH’s being considerably weaker and more likely to sell off holdings.”
He advised traders on potential strategies: “Long BTC perpetuals paired with short BCH perpetuals is the most efficient market-neutral way to express this view, barring funding rate risk.”
For those concerned about volatile funding rates, Chung recommended exploring “other approaches, such as short-term futures or borrowing BCH in the spot market.”
At press time, BTC was trading at $57,727.
The above is the detailed content of Mt. Gox Bitcoin Repayments May Be Beginning. For more information, please follow other related articles on the PHP Chinese website!