Overall Bitcoin is still seeing returns that no other investment has. At the moment it is having a downturn. This is something Bitcoiners have seen over and over, and it doesn’t scare them in the least.
Bitcoin is experiencing significant declines as the defunct cryptocurrency exchange Mt. Gox begins repaying its creditors, which likely includes some selling off their Bitcoin holdings. The leading cryptocurrency traded around $55,000 on Friday morning, marking a fall of more than 4% in a day and over 10% in a week, according to CoinMarketCap. This market movement comes as Mt. Gox, which went bankrupt a decade ago due to a massive hack, starts distributing $9 billion worth of Bitcoin this month.
Bitcoin drops drastically to below $54K today#Bitcoin #bitcoins #Crypto #cryptocurrency https://t.co/oPVvd3NeJW
— Al Bawaba News (@AlBawabaEnglish) July 5, 2024
A report by Arkham Intelligence revealed that Mt. Gox transferred 47,229 Bitcoin, valued at over $2.7 billion, to a new wallet on Thursday. Experts had predicted that the repayment process would prompt many creditors to sell their Bitcoin quickly, further driving down its price.
Other major cryptocurrencies have also seen declines. Ether, the second-largest cryptocurrency by market capitalization, has dropped by over 5.5% and is trading around $2,900. Cardano and Dogecoin have fallen by 8.5% and 6.5%, respectively, in the past 24 hours. Overall, the global crypto market cap stands at $2.02 trillion, reflecting a 4.5% drop on Friday morning.
Bitcoin price today: Drops below $55k as Mt Gox begins repayments to creditors By https://t.co/39HIgp025K – https://t.co/39HIgp025K https://t.co/6PgQXsTp55
— CryptoHig (@CryptoHig) July 5, 2024
Mt. Gox, once the world’s largest Bitcoin exchange, is supposed to return more than 140,000 Bitcoin to the victims of its 2014 hack, which was one of the first major cryptocurrency breaches. At its peak, the Tokyo-based exchange handled nearly 70% of all Bitcoin transactions. However, it declared bankruptcy in 2014, owing creditors 45 billion yen ($414 million). Since then, creditors have been awaiting the repayment of their holdings.
Earlier this year, in May, Mt. Gox made its first transaction in over five years, initiating the plan to distribute assets back to creditors by October 31, 2024. The recent developments and large-scale transfers indicate that the exchange is now moving forward with these repayments.
Samson Mow Reveals What’s Happening to Bitcoin As It Drops Towards $57,000 https://t.co/35IKzTy3DW
— Iggy MacIósaef (@ignilyan) July 5, 2024
The ongoing sell-off by Mt. Gox creditors is contributing to the downward pressure on Bitcoin prices. As these creditors receive their repayments and potentially liquidate their holdings, the market may continue to see volatility. The large volume of Bitcoin being released into the market at once is a significant factor affecting current price trends.
Overall, the repayment process from Mt. Gox is a reminder of the vulnerabilities and uncertainties inherent in the cryptocurrency market. As the situation develops, market participants and observers will be closely monitoring the impacts on Bitcoin and other cryptocurrencies.
Key Points:
i. Bitcoin’s price dropped to around $55,000 after Mt. Gox began repaying creditors, with a 4% fall in a day and over 10% decline in a week.
ii. Mt. Gox, which went bankrupt a decade ago due to a hack, is distributing $9 billion worth of Bitcoin, including a recent transfer of 47,229 Bitcoin valued at over $2.7 billion.
iii. Experts predicted that creditors would likely sell their Bitcoin upon repayment, contributing to the price decline.
iv. Other cryptocurrencies like Ether, Cardano, and Dogecoin have also seen declines, with the global crypto market cap falling to $2.02 trillion.
v. Mt. Gox, once the world’s largest Bitcoin exchange, declared bankruptcy in 2014 and is returning over 140,000 Bitcoin to creditors, with the repayment process ongoing until October 31, 2024.
James Kravitz – Reprinted with permission of Whatfinger News
