ANOTHER SOLID REASON FOR THE DECLINE IN #BITCOIN
In my earlier post today, I mentioned that the recent drop in Bitcoin's price was due to the German government liquidating $300 million worth of BTC last week. They acquired over 50,000 BTC from an individual convicted of criminal activities.
However, today's Bitcoin crash can be attributed to the upcoming $9 billion Bitcoin distribution from Mt. Gox. This repayment plan is set to take place next July.
According to Coindesk, Mt. Gox, the now-defunct crypto exchange, is slated to return over 140,000 Bitcoin to victims of the 2014 hack. The repayments will be made in both Bitcoin and Bitcoin Cash, which could potentially increase selling pressure in both markets.
In May, the exchange transferred more than 140,000 BTC, valued at approximately $9 billion, from cold wallets to an undisclosed address across 13 transactions. This marked the first on-chain wallet movements in five years. CoinGecko data shows that Bitcoin prices fell from over $62,300 during early Asian trading to below $62,100 shortly after the Mt. Gox statement was released.
This is not financial advice but for educational purposes only.