Mt. Gox Repayments Mark Major Market Event
- 王林Original
- 2024-07-12 16:14:26803browse
Nearly ten years after its downfall, Mt. Gox has started repaying customers, affecting Bitcoin and Bitcoin Cash markets.
Nearly ten years after declaring bankruptcy, Mt. Gox has begun repaying its customers, impacting the Bitcoin and Bitcoin Cash markets.
On Friday, Mt. Gox announced that it has started making repayments to its customers, concluding a nearly decade-long wait for some users to retrieve their digital currencies, CoinDesk reported.
At its peak, the defunct cryptocurrency exchange was the most successful crypto exchange globally, facilitating over 70% of all BTC transactions in its early years.
The exchange went bust following a hack in early 2014 that saw it lose around 740,000 Bitcoin.
The news of the repayments brought selling pressure to the cryptocurrency market and Bitcoin in particular, as was announced by Mt. Gox last month.
Bitcoin’s price fell to its lowest in five months on Friday during the sell-off, hitting $54,000 at one point. The freefall liquidated over $580 million in optimistic bets.
Bitcoin Price Hits 5-Month Low Amidst Repayments
According to data from CoinMarketCap (via EconoTimes), Bitcoin has now recovered slightly and was trading at $54,500.35 at the time of writing.
A large chunk of the sell-off could be linked to concerns stemming from Mt. Gox's obligations to its creditors, eToro market analyst Josh Gilbert said, with the repayments making around $8 billion in Bitcoin available for purchase on the market starting this month.
According to Gilbert, following Bitcoin's rapid decline, he anticipates the cryptocurrency to experience even greater price volatility. Bitcoin was last trading at $53,600.
"The news flow is far more bearish than bullish right now, and the selling activity we’re seeing is quite clearly unsettling investors, which often drives more selling," Gilbert said.
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