Bitcoin's price dropped below $55,000 for the first time since February due to Mt Gox's distribution of billions in owed funds. The exchange collapsed in 2014 and has begun repaying creditors around $7.8 billion in Bitcoin, Bitcoin Cash, and fiat currency.
Image Source: www.coinrocco.com
The reimbursements will distribute 142,000 bitcoins, 143,000 bitcoin cash, and 69 billion Japanese yen owed to approximately 127,000 creditors. Repayments will begin in July 2024.
This announcement has increased selling pressure, causing Bitcoin to fall over 6% to around $54,000 and the broader crypto market to lose over $170 billion in 24 hours. On Thursday, Mt Gox transferred 47,000 Bitcoin worth $2.7 billion, raising concerns about potential sales by creditors.
Despite the payouts being a significant step in resolving Mt Gox's insolvency, the influx of coins might disrupt market supply and demand. Analysts expect significant market volatility with the Mt Gox distributions and upcoming German government Bitcoin sales.
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