Bitcoin investors shake with fear as Mt. Gox prepares to dump 141,000 BTC


  • The defunct Bitcoin exchange Mt. Gox is nearing the end of a rehabilitation plan to return 141,686 Bitcoins to their rightful owners.
  • Experts believe that the Bitcoin lost in Mt. Gox is likely to make its way back to exchanges.
  • Bitcoin price drop below $60,000 was fueled by the news of Mt. Gox's comeback and the rejection of the spot Bitcoin ETF.

Analysts believe that Mt. Gox's comeback combined with the recent Bitcoin spot ETF rejection has triggered a drop in BTC price. The Bitcoin tokens that Mt.Gox exchange is expected to return to investors and traders were acquired between $100 to $1000. This could trigger a cascading sell-off in Bitcoin. 

Mt. Gox prepares to return to traders lost Bitcoins on its defunct exchange

The defunct cryptocurrency exchange's plan to return $8.5 billion in Bitcoin to traders and investors has gained final approval from trustees. The recovery plan is now final and binding, and creditors will be compensated, following the confirmation from a Japanese court. 

Mt. Gox was once the world's largest Bitcoin exchange. Losing BTC that belonged to thousands of customers, the exchange shut down in early 2014, and traders have been awaiting recovery of lost funds since. 

The exchange lost 850,000 BTC tokens at the time of shutdown and is now prepared to return 141,686 of it. The Tokyo-based exchange is ready to compensate more than $8.5 billion in Bitcoin holdings (for $60,000 each BTC token) to its rightful owners. 

A Tokyo District Court has now issued a "final and binding" conformation in response to the 2018 petition filed by creditors. 

@CryptoWhale, a pseudonymous cryptocurrency analyst, believes that recovering lost Bitcoins will trigger a crash in BTC price. The analyst argues that the BTC tokens that Mt.Gox plans to return were acquired at $1,000 or lower price. 

As creditors' claims are settled, BTC tokens are likely to start flooding exchanges. A spike in Bitcoin balance on exchanges historically increases the selling pressure on the asset. 

The recent rejection of the Bitcoin spot ETF by the Securities & Exchange Commission (SEC) combined with the confirmation of 141,686 BTC recovery is expected to fuel a bearish outlook among traders and investors. 

FXStreet analysts have evaluated the Bitcoin price trend and predicted a drop to $54,000 as correction begins. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP