Mt Gox Repayments Deepen BTC Troubles
Mt Gox Repayments– The crypto market saw increased bearish sentiment early Monday following news from defunct exchange Mt. Gox, set to repay over 140,000 BTC to victims of a 2014 hack starting next month. Bitcoin fell to $60,723, marking a more than 5% loss at one point over 24 hours. Ether and the broader market also declined, with the CoinDesk 20 Index (CD20) dropping by more than 5%. Bitcoin’s recent decline from above $70,000 has formed a double top bearish reversal pattern.
However, spot and futures volumes in bitcoin and ether markets on centralized exchanges have been notably lower compared to record highs in March, indicating reduced investor participation or conviction in selling actions—a potential characteristic of a ‘bear trap.’
Despite the market downturn, Ether traders have shown strong interest in bullish options on Deribit. According to Amberdata, there has been significant buying activity in Ether’s September $4,000 call options, with traders anticipating a potential move to new record highs. Greg Magadini, director of derivatives at Amberdata, noted that the increased buying activity signals traders’ confidence that Ethereum could surpass $4,000 and potentially set new all-time highs.
In another development, Japanese institutional investors are increasingly embracing digital assets, as revealed by a survey conducted by Nomura of 547 investment managers. The April survey indicated that more than 50% of these managers plan to invest in cryptocurrencies over the next three years, viewing them as a strategic diversification opportunity. The survey further disclosed that managers may allocate between 2% and 5% of their assets under management to crypto, with nearly 80% planning to invest for over a year. This shift towards crypto investments reflects growing concerns about Japan’s fiscal challenges and the volatility of the yen’s exchange rate.
Metaplanet, a Tokyo-listed company, recently adopted Bitcoin as a reserve asset to hedge against Japan’s economic uncertainties. On Monday, the firm announced its intention to purchase an additional $6.2 million worth of BTC using proceeds from a debt sale.
trending crypto chart today
- The chart shows CryptoQuant’s Coinbase premium index, which tracks the spread between bitcoin’s prices on the Nasdaq-listed Coinbase (COIN) exchange and the offshore giant Binance.
- The cryptocurrency continues to trade at a discount on Coinbase, reflecting weaker net buying pressure from U.S. investors.
- Source: CryptoQuant
– Omkar Godbole
Trending Posts
- FTX Claim Sale Yields CoinShares A 116% Return
- Crypto News- Repayments For Bitcoin And Bitcoin Cash By Mt. Gox Trustee Set To Begin Next Month
- Crypto Weekend Highlights: Tron USDT Outpaces Visa, $6B German Bank Names Bitcoin Advocate As CEO, And Other Updates
For the latest in crypto updates, keep tabs on Crypto Data Space.
Leave a comment