Mt. Gox might become yet another addition to the list of the factors which are pressurising the BTC price. We already know that there are numerous factors that are contributing to the volatility of the Bitcoin market. In fact, the BTC price is already on the decline. The decline is a sharp one. The price drop is so intense that it is really becoming a fearful factor. However, in the recent past, the BTC price briefly crossed the $25,000 mark. But this growth received a bearish rejection from the investors, who feared a trend reversal. This, in turn, has resulted in rapid liquidations and sharp price drops.
Recently, a rumour regarding a sell-off by users of defunct exchange Mt. Gox has raised the fear levels of investors. Therefore, it is likely to become yet another factor that might affect the Bitcoin price in a negative manner. If you wish to know more about the Mt. Gox factor, then this article is the perfect stop for you. Keep reading this article to know more about the new factor which might end up influencing the price of Bitcoin.
The Mt.Gox Rumours
The data from TradingView and CoinTelegraph Markets Pro is showing that on BitStamp BTC/USD has reached $19,766. Therefore, the BTC price is heading sharply towards a new six-week low. In fact, liquidity in the Bitcoin market is already in a bad state. In such a scenario, there surfaced an unconfirmed rumour stating that Mt.Gox funds were due for release to creditors on Aug. 28. The already jittery market reacted badly to this rumour.
However, like any other rumour, there have been varied claims regarding the amount of BTC. One such claim stated that 137,000 BTC will be released in one go. While some others claimed that the funds will be sent out in small parts, with the payouts to begin this weekend. However, a form of consensus might be seen in the way in which some creditors allegedly are willing to sell BTC owed to them.
In fact, Mt. Gox has a history of imploding with BTC. It happed almost ten years ago and involved hundreds of thousands of BTC. That incident witnessed a lengthy legal procedure, with funds being recovered from various exchanges. After that Nobuaki Kobayashi, the appointed rehabilitation trustee stated on the 6th of July that preparations are going on to repay the creditors. At that time he also mentioned the end of August as a tentative period of rolling out the refunds. However, there has been no update of official update. Therefore, it remains a mystery as to why the rumours gained so much ground.
Concluding Lines
Even if we leave out the Mt. Gox factor, the BTC holders have suffered further losses thereby intensifying the pain. In fact, at one time, the percentage of the overall BTC supply in profit came down almost to 55%. Therefore, even without the Mt. Gox factor, the BTC holders are already suffering a lot.
Also read: Nvidia and The Crypto Market During The Last Crypto Crash
