💥💥Mt.Gox will start compensation, BTC plummeted to 58,000, is 58,000 the bottom?
Yesterday afternoon, the closed Bitcoin exchange Mt. Gox (Mentougou) issued a notice that it will start distributing Bitcoin and Bitcoin Cash repayments in July. The amount is as high as 9 billion US dollars; it caused market panic, BTC plummeted to around 58,000 in the early morning, and found support near MA200, and currently rebounded to around 61,500;🚀🚀🚀
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First, let’s look back at the Mentougou incident: Mt.Gox was founded in 2010 and was once the world’s largest Bitcoin exchange until the platform suffered a security breach in 2014, resulting in a loss of 850,000 Bitcoins.
In September 2023, the trustee of the now-defunct exchange announced that it would repay creditors 142,000 Bitcoin and 143,000 Bitcoin Cash, as well as a total of 69 billion yen ($432 million) in fiat currency by a new deadline of October 2024, which is now worth about $9 billion due to the rise in Bitcoin prices. ;
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However, Alex Thorn, head of research at Galaxy Digital, predicts that only 6,500 BTC will enter the market in the future and the selling pressure will not be too great;
At present, BTC faces the following selling pressures: Mt.Gox's Bitcoin distribution (estimated value of $9 billion, starting in July), the German government's sale of confiscated Bitcoin (US$3 billion), Bitcoin miners selling $2-3 billion, ETFs selling $1.4 billion, Bitcoin OG wallets selling $1.2 billion, etc.;
⭐Jifeng believes that the 58,000 position requires at least multiple tests to confirm the validity of the bottom support, and even test the 56,000-58,000 range; the market is expected to be repeatedly washed in July;
