The crypto community is abuzz with news about Mt. Gox, the cryptocurrency exchange that went bankrupt in 2014, beginning the distribution of Bitcoin (BTC) to its creditors. This event involves distributing 141,686 BTC, worth several billion dollars, to those affected by the hack that led to the exchange’s collapse. Such a large release of BTC into the market has raised concerns among investors about potential price drops due to selling pressure.
On July 23, 2024, a wallet linked to Mt. Gox transferred approximately 42,587 BTC. This movement immediately caused anxiety among investors, fearing a sharp decline in Bitcoin’s price due to the sudden influx of Bitcoin into the market. As expected, the price of Bitcoin fell below $66,000, marking a notable decline and sparking worries of prolonged market volatility.
However, there is a silver lining to this scenario. Kraken, a leading cryptocurrency exchange, has stepped in to complete the distribution of Bitcoin (BTC) and Bitcoin Cash (BCH) to the creditors of Mt. Gox. This marks a significant step in resolving one of the largest bankruptcies in cryptocurrency history. Data indicates that most creditors are not selling their Bitcoin immediately, which could help mitigate the negative impact on Bitcoin’s price. This news brings relief to investors and the broader cryptocurrency market.
The actions of Kraken in facilitating this distribution highlight its role in supporting market stability. As creditors begin to receive their reimbursements, the crypto market is closely monitoring these movements to anticipate any potential fluctuations in Bitcoin’s price. The proactive measures taken by Kraken and the cautious approach of the creditors could help stabilize the market during this critical period.
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