Bitstamp Set to Send Bitcoin (BTC) and Bitcoin Cash (BCH) to Mt. Gox Creditors

The distribution is part of the ongoing repayment process announced by Mt. Gox's Trustee earlier this month.

Cryptocurrency exchange Bitstamp has announced that it will be distributing Bitcoin (BTC) and Bitcoin Cash (BCH) to Mt. Gox creditors. The move is part of the ongoing repayment process announced by the Mt. Gox Trustee earlier this month.

Following Kraken, Bitstamp is next in line to send funds to Mt. Gox victims as part of the seven-year repayment plan. After being locked for many years, a large amount of BTC is set to hit the markets.

According to a recent statement, Bitstamp has received the crypto assets from the Mt. Gox trustees and is working to return the funds to Bitstamp customers who are also recognized as Mt. Gox creditors. However, the exchange noted that the plan will exclude UK residents.

“There will be a separate distribution plan. Rest assured, we’ll keep you updated on the process and ensure you receive your assets as soon light as possible,” the exchange added.

More BTC Hitting Markets

Bitstamp’s announcement comes after Mt. Gox reactivated its crypto wallet and began to move Bitcoin. The entity also carried out several testing transfers ahead of the large transactions.

According to data from blockchain analytics firm Arkham Intelligence, on Tuesday, Mt. Gox transferred $2.85 billion worth of Bitcoin to new wallets. The entity then sent 5,110 BTC, valued at around $340 million, to four separate Bitstamp addresses.

Later on Wednesday, Arkham reported that Mt. Gox moved $2.47 billion in Bitcoin to new wallets and distributed 5,106 BTC, equivalent to $335,8 million, to four separate Bitstamp addresses.

Bitstamp is one of the five cryptocurrency exchanges designated to facilitate repayments to Mt. Gox’s creditors, alongside Bitbank, Kraken, SBI, and VC Trade. Earlier this month, Mt. Gox sent $84.9 million in Bitcoin to the Japanese exchange Bitbank and $3 billion to Kraken.

Following the activities, Kraken confirmed that it had received Bitcoin and Bitcoin Cash from the Mt. Gox trustees. Some Mt. Gox creditors reported receiving repayments from Kraken this week, and now it seems like more are on the way.

Bitcoin Shows Resilience Amid Mt. Gox Repayments

The market has reacted negatively to the initiation of repayments by Mt. Gox, with increased volatility and a decline in cryptocurrency prices. Following the announcement of repayments, Bitcoin’s price dropped to $54,000, marking its lowest level in five months.

The Mt. Gox trustees are repaying around 141,686 BTC, valued at approximately $9.4 billion, to their creditors. The decline in price could be attributed to selling pressure as creditors begin to receive their funds, sparking concerns about a potential influx of Bitcoin into the market.

On the other hand, many analysts believe that the Bitcoin market has matured since the 2014 collapse of Mt. Gox and may be better equipped to handle the increasing supply of Bitcoin.

Some speculate that many Mt. Gox creditors may opt to hold the assets rather than sell them, considering that they were among the first Bitcoin adopters and are now considered long–term holders.

Other major events, such as the auctioning of seized Bitcoin from the Silk Road or the liquidation from German authorities, did not cause any major long-term declines in Bitcoin’s price. This suggests that the market can absorb large amounts of Bitcoin without crashing the price.

Still, the sentiment remains bearish, and analysts anticipate continued volatility in the short term as the market adjusts to the repayments.

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