Bitcoin and the wider cryptocurrency market are experiencing a significant decline in prices following an announcement from bankrupt exchange Mt Gox regarding its repayment plans. The continuous downward trend in the market has intensified in recent hours, with Bitcoin reaching a low of $60,675 at the time of writing. This represents a decrease of over 15.6% from its value of $71,907 just two weeks ago.
Earlier today, Bitcoin briefly rallied to $64,382 before stabilizing around $62,000, but it has since crashed to the $60,000 range. This decline coincided with Mt Gox’s announcement about its repayment plans for investors.
According to Mt Gox’s report, the necessary preparations for repaying creditors have been completed, and it plans to begin distributing BTC and BCH in early July 2024. The exchange has also implemented the required regulatory measures to ensure a smooth and compliant repayment process.
Mt Gox’s troubled history dates back to February 2014 when it suspended trading, shut down its website, and filed for bankruptcy after 850,000 BTCs were stolen. This theft resulted in a lengthy reimbursement process for users with funds trapped on the exchange. Now, after a decade, users finally have a date to expect reimbursement.
However, Mt Gox’s announcements regarding its repayment plan have consistently triggered significant sell-offs in the market. Last month, when Mt Gox transferred 140,000 BTC to an anonymous address, the crypto market reacted sharply, causing Bitcoin’s price to plummet from the $70,000 range to $67,000 within hours.
Now, market watchers are increasingly cautious about the potential impact of Mt Gox liquidating its Bitcoin reserve, as it could further exert bearish pressure on the crypto market.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic holds no responsibility for any financial losses incurred.