The anticipated Bitcoin payouts from the now-defunct exchange Mt. Gox have created some serious selling pressure, leading to a further decline in BTC prices. Financial analyst Jacob King estimates that these payments could help introduce $820 million worth of Bitcoin to the market, primarily through sales. On-chain data shows that Mt. Gox creditors have already started selling.
Mt. Gox redemptions have begun using their #Bitcoin after more than a decade! Following this, on-chain data shows a significant increase in sales from these wallets.
No Bitcoin enthusiast would say this out loud, but most of the $820 million…
pic.twitter.com/VWcxBc43Sk
— Jacob King (@JacobKinge)
July 4, 2024
This development has raised concerns about Bitcoin’s price stability, which has been struggling, trading slightly above the $55,000 mark, losing 20% in Q2 2024. King suggests that market sales by Mt. Gox creditors might push the leading cryptocurrency back into a bear market due to current low demand.
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Despite the potential market impact, the payout is seen as a positive step for the industry and users of the defunct exchange, with former CEO Mark Karpeles expressing relief that customers are finally getting their Bitcoin after more than a decade of waiting.
An estimated 127,000 creditors are targeting Bitcoin worth over $940 million. Given the significant increase in cryptocurrency value over the past decade, it is expected that many will sell their assets to lock in profits.
King anticipates that up to 99% of creditors will sell their Bitcoin holdings, leading to billions of dollars gradually flowing out over the coming weeks.
