March 25, 2023

Bitcoin (BTC) failed to hold support at $20,000 on Aug. 27 as fears of selling by users of defunct exchange Mt. Gox added to price pressure.

BTC/USD 1-day candlestick (Bitstamp). Source: TradingView

Mt. Gox rumors dismissed as ‘typical cryptocurrency’

From Cointelegraph Markets Pro and Transaction view On the heels of BTC/USD, it fell to a fresh six-week low, hitting $19,766 on Bitstamp.

Lack of liquidity over the weekend appeared to have added to an already tight market, which reacted badly to unsubstantiated rumors that the Mt. Gox fund will release its creditors on Aug. 28.

At the time of writing, accounts vary widely, with some arguing that 137,000 BTC was released in one go. Others said the funds would be sent in batches, but payments would still start this weekend.

Creditors agreed in the form of allegedly wanting to sell the BTC owed to them, something that has been out of reach since 2014, when BTC/USD was trading below $500. They worry that the unrealized 40x return is too tempting for creditors to be willing liars.

About a decade ago, Mt. Gox imploded hundreds of thousands of bitcoins. After a lengthy legal process to deal with the funds that were subsequently recovered from the exchange, Nobuaki Kobayashi, the appointed revival trustee, announced on July 6 that he was “preparing to repay” creditors.

exist document At the time, Kobayashi used “the end of August” as a reference period to potentially start some initial payments.

“After discussions with the court, according to the reorganization plan, the reorganization trustee plans to set assignments, etc., as a limited base period from about the end of August this year until the repayment of all or part of the initial repayment is completed in a safe and secure manner. repayment,” part of it read.

However, with no new official information appearing on a dedicated website covering rehabilitation procedures, it remains unclear why the sell-off rumours gained so much traction so quickly.

Meanwhile, for trader and analyst Josh Rager, even if all BTC were to be sold at once, the resulting selling pressure would not create the kind of doomsday event some imagined.

Cointelegraph contributor Michaël van de Poppe said: “Concerns about a possible Mt. Gox Bitcoin launch are unfounded.” Add to.

“Typical cryptocurrency.”

Profits squeezed amid weekend volatility

However, the latest losses have caused more pain for existing BTC hodlers.

Related: US stocks lose 1.25 tons in one day — more than the entire cryptocurrency market cap

according to data Data from on-chain analytics firm Glassnode showed that the total BTC supply as a percentage of profits hit a one-month low on the day at just over 55%.

older coins At the same time, the trend of increasing dormancy continues, with the percentage of supply last leaving its wallets two or more years ago reaching a ten-month high.

Cointelegraph recently reported that despite the cryptocurrency market drop in 2022, hodler habits remain largely unchanged.

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