With the loss of funds in the 2011 Mt. Gox hack and then the loss of about $ 17.8 billion worth of 850,000 BTC at today’s price, about $ 2.8 billion worth of 137,000 BTC will soon be released to the market. In 2014, Mt. Gox reported discovering 200,000 BTC, but these coins have been involved in proceedings in the past.
In November 2021, Mt. Gox announced a formal “rehabilitation plan” to return lost funds to investors who lost access to cryptocurrencies about seven years ago.Then, on July 6, 2022, Mt. Gox and Takeru Kobayashi, the “rehabilitation trustee”, Email to creditors Offers the option to receive USD, BTC, or BCH. The news is closer than ever to the funds that will eventually be released to creditors.
Does Mt. Gox Coin Affect Bitcoin Prices?
As crypto analyst and crypto bunter host Miles Deutscher pointed out, many investors have said that the release of 137,000 BTC could catastrophically lower Bitcoin prices due to increased selling pressure. I am concerned.
24 / Creditors have the option to receive US dollars, $ BTC Also $ BCH.. Creditors are estimated to begin receiving funds as early as August.
For many, the release of these funds led to huge supply dumps, which $ BTC price.
— Miles Deutscher (@milesdeutscher) July 9, 2022
There is even a theory that the reduction in Bitcoin prices coincides with the merger of Ethereum and that “flipping” may be realized. Flipping is a fictitious event in which Ethereum overtakes Bitcoin by market capitalization, which can occur if Ethereum rises 30% from its current price and Bitcoin falls to $ 10,000.
Ethereum Marge is the perfect time for Mt. Gox users to dump about 140,000 BTC (about $ 3 billion) in late August 2022.
Flipping is in our friends.
—EthereumJesus.eth⟠🙌🏻🦇🔊🐼 (@EthereumJesus) July 7, 2022
But fear may be unfounded, as many creditors already have. Sold their claim To cryptocurrency. Groups such as Fortress Investment Group LLC have provided creditors with early cash payments of $ 600 to $ 1,300. Michael Hourigan, Fortress’s managing director, reportedly said:
“We are offering liquidity options to creditors who want to receive cash or BTC now, rather than waiting another one to 1.5 years.”
In addition, creditors who have not yet made an early settlement may not want to liquidate Bitcoin as they will soon represent early crypto followers. It is reasonable to suggest that many who receive Bitcoin payments are more likely to send them to refrigerated storage than to sell them when Bitcoin falls by more than 60% from a record high.
Some of the released money could go into altcoin such as Ethereum, which is at its most important moment in history. Prior to 2014, there was little or no replacement for Bitcoin, but in 2022 there was an influx of investment in tens of thousands of crypto projects.
What if Bitcoin is liquidated?
Some Bitcoins are already on sale before the next release of Bitcoin. In 2018, 24,658 BTC (equivalent to $ 260 million at that time) Was on sale Creditors’ rally by Kobayashi.Sale
“It was necessary and appropriate to procure the right amount
Of money to secure the interests of the principal creditors and delay the damages of the determined and undecided bankruptcy claims. “
As you can see from the chart below, Clearing marked the top of Bull Run in 2017. After the number of Bitcoins held by Mt. Gox declined, Bitcoin prices fell, leading to the bear market in 2018 and did not recover until late 2020.
If the remaining Mt. Gox fund releases have a similar impact on Bitcoin prices, it will probably be below $ 10,000. However, even in recent months, there has been considerable selling pressure on Bitcoin from stakeholders such as the Luna Foundation Guard, Three Arrows Capital and Bitcoin miners.
LFG sold billions of dollars worth of Bitcoin, but the impact on Bitcoin was negligible as the market absorbed selling pressure. A few weeks after the event, Bitcoin prices fell due to changes in market beliefs and global outlook. While the market may absorb sales from Mt. Gox creditors, the social sentiment of early Bitcoin vendors letting go of coins can create bearish psychological sentiment.
