Breaking Crypto News – The Future of Bitcoin Amidst Mt. Gox Repayments
Breaking Crypto News – Analysts warn that the $8.5 billion in scheduled repayments of Bitcoin by Mt. Gox to creditors in July could not have the disastrous effect on the price of the cryptocurrency that many had predicted. According to IG Markets analyst Tony Sycamore, there are just too many historical variables to forecast with certainty how the impending repayments will affect the market. However, he calculated that almost half of all Bitcoin, or around $4.5 billion, might be poised to trade in July.
On the other hand, the head of research at Galaxy Digital, Alex Thorn, said in a post published on X on June 25 that just 65,000 of the 141,000 Bitcoins in circulation are likely to be traded, greatly lowering the amount of anticipated selling activity. According to Thorn, over 75% of creditors have chosen to get paid “early,” forgoing 10% of their payback in the process, and as a result, about 95,000 BTC will first be available for purchase.
Sycamore Says There’s Still Hope for Bitcoin
According to Sycamore, the repayments are taking place in the context of declining market sentiment, technical selling, and outflows from Bitcoin ETFs. He also mentioned that a large portion of the speculative “hot money” in cryptocurrency had left to pursue “greener pastures” in the form of mega-stocks like Apple and Nvidia in the equities market.
Regarding the overall price movement of Bitcoin, Sycamore expressed his doubts that the current sell-off may go much lower. He gave hope for the upcoming weeks by pointing to the 200-day moving average’s strong support.
FAQ
What was the Problem with Mt. Gox?
Tokyo-based Mt. Gox, which was formerly the largest Bitcoin exchange in the world, was hacked in 2011 and declared bankrupt in 2014. Two Russian citizens were charged by US prosecutors last year with planning to hack into the exchange’s servers with other people.
How Much Did Mt. Gox Lose When It Was Attacked?
In 2014, the year it was attacked, the exchange lost 940,000 BTC, which amounted to $64 million at the time.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment