- Mt. Gox has continued its repayment plan following a ten-year bankruptcy proceeding, sending out 139K BTC to three different wallets earlier this week.
- Kraken, an unknown wallet and a Mt. Gox cold wallet were the three benefactors.
- Despite such a significant number of BTC flooding the market, the coin’s value has increased since before the transactions.
The crypto market panicked when it heard that Mt. Gox was set to repay billions worth of Bitcoin following a ten-year bankruptcy proceeding. As it turns out, that panic may have been premature. After falling as low as US $52k (AU $77k) in the past month, Bitcoin has been on a tear – up nearly 15% for the week.
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The bullish trend comes even as Mt. Gox continues its compensation plan, moving 139K BTC (valued at close to AU $14b) earlier this week. This suggests the rush of selling at the end of June was an overreaction and that the market can handle the increased supply pressure.
Mt. Gox Pays Off Billions of Dollars in Three Transactions
Several major exchanges are set up as creditor distributions for the Mt. Gox payouts, including BitGo, Bitstamp and Kraken. Earlier this morning, Kraken received a large sum of Bitcoin and Bitcoin Cash for distribution, totalling over AU $4.6b, while sending out around AU $4b to an unknown wallet address.
A third transaction in the span of just a few hours saw a Mt. Gox cold wallet receive 4.6k BTC (approximately AU $435m).
These three transfers represent about half of Mt. Gox’s remaining reserve, with the company still holding approximately 140K BTC for the time being. It’s expected the defunct exchange will continue to pay out creditors throughout July, relieving even more pressure on the Bitcoin price.
In reality, the FUD surrounding Mt. Gox’s compensation plan has already been proven overstated. The premise is that most Bitcoin recipients would immediately sell their assets after ten long years of waiting – but remember, many victims are likely still heavily invested in the scene and may have chosen to simply grow their portfolios.
The past 24 hours of Bitcoin trading shows the coin’s resilience – its price dropped US $2k (AU $2.97k) in the immediate aftermath of Mt. Gox’s spending spree. But within 12 hours, Bitcoin’s price was back to where it started and has actually gone up since then.
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Bitcoin may re-enter its pre-July holding pattern once it closes in upon the US $70k (AU $104k) ceiling, but for now, fears of the coin’s demise have been greatly exaggerated.
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