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Mt. Gox Begins Payments in Bitcoin and Bitcoin Cash

Mt. Gox announces BTC and BCH repayments on July 5, 2024, potentially flooding the market with over $8 billion in assets, intensifying negative sentiment.
Mt. Gox Begins Repayments

After transferring over 47,000 Bitcoins to a new wallet, Mt. Gox officially announced that it would return BTC and BCH to users, further exacerbating the negative market sentiment.

The “ghost” of Mt. Gox has recently put significant pressure on the crypto market, causing the community to worry about the impending significant asset sell-off.

But now, the moment has arrived. On July 5, 2024, Mt. Gox officially announced the start of BTC and BCH repayments.

mtgox repayment
Mt. Gox Repayment Announcement

Ten years after the exchange was hacked in 2014, Mt. Gox’s trustee will return 142,000 BTC and 143,000 BCH to creditors.

According to the announcement, the exchange will send the assets to users’ accounts on pre-selected exchanges. Upon receiving BTC and BCH, users can immediately choose to sell, hold, or withdraw to personal wallets.

Many analysts fear that users will sell all the coins they receive, flooding the market with over $8 billion worth of Bitcoin and leading to a sharp price dump.

However, there are more optimistic views that most of these creditors are bullish BTC whales who will choose to hold rather than sell at current prices. As a result, Mt. Gox’s impact on BCH prices is expected to be more significant than that of BTC.

Despite the optimism of some analysts, the market has already “sold the news” since early July. Particularly in the past two days, July 4 and 5, BTC prices have dropped nearly $10,000, hitting a five-month low.

Presently, BTC is fluctuating around $54,000. This market situation has many fearing that Bitcoin dropping to $50,000, as indicated in late June, is now more likely than ever.

Mt. Gox Begins Repayments
1h chart of the BTC/USDT pair on Binance at 01:55 PM on July 5, 2024

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