Bitcoin Price Drop Below $20k, Mt. Gox Repayment Rumors Freakout Traders
The crypto market has been on a grumpy ride for two days and today the global crypto market cap has lost its crucial level of $1 trillion.
The world’s first cryptocurrency, Bitcoin has tumbled down below the $20,000 range. This was an outcome of a sell-off by traders at Mt. Fox that increased the pressure.
The increased liquidity during the weekend has fueled the already bearish flagship currency trading around $19,000
Mt. Gox To Repay Creditors?
Also there is a rumor that the inoperative Mt. Gox will be releasing the funds on August 28th. A few claim that 137,000 BTC will be released in one go while others state that it will be paid in part
There was a sense of agreement when traders flocked in together to sell their Bitcoin holdings as the exchange stopped operating in 2014 when BTC was trading around $500.
A decade ago Mt.Glox gave away hundreds of thousands of Bitcoins and recently when the long running legal process came to an end, the trustee, Nobuaki Kobayashi on July 6th revealed there are plans to repay the creditors. As per the announcement, the repayment was supposed to begin from August.
It’s still unclear about the repayment as there is no official announcement being made on the website. However, the reason that led to such huge sell-off rumors still remains unanswered.
There’s so much false information floating around Twitter so let’s clear something up.Mt.Gox isn’t releasing ALL 137,000 bitcoin tomorrow. It’s starting the repayment process tomorrow so creditors will begin to receive their bitcoin. The entire process will take months!— Danny Devan (@dannydevan) August 27, 2022
A trader and analyst known as Rager claims that even though there is huge BTC sell off, the selling pressure would not be that bad as expected.
MT GOX release probably creating more fear than needed140k BTC = $2.8B BTC daily trade volume $20B to $30BThese BTC aren't going to be all sold at once — Rager (@Rager) August 27, 2022
The proportion of the total BTC supply that is in financial gain hit a one-month low during the day with just over 55%, as per statistics from on-chain analytics company Glassnode.Source