Bitcoin News

Bitcoin drops below $55K amidst Mt. Gox BTC transfers

Bitcoin ($BTC) is hovering below the mark of $56,000. This is credited to Mt. Gox to some extent. The defunct crypto exchange platform previously announced its plans to begin making settlements with creditors in early July 2024. It has moved Bitcoin tokens to wallets to potentially initiate and conclude the process through platforms.

Mt. Gox moved more than $2.7 billion in Bitcoin in just 2 hours. A total of 47,229 tokens are believed to be involved here, taking the total liquidation in the last 24 hours to $200 million.

Mt. Gox was once a dominating Bitcoin exchange platform. It suffered a hack attack in 2014 wherein several users lost most of their funds. Those tokens were acquired in 2013. Victims demanded the platform to return their funds but the process continuously got delayed. Suffice it to say, it is only after 8-9 years that creditors receive their dues. These are worth way more than what they were valued in 2013.

Hence, there is a question about what creditors would do with their funds after the settlement.

Many speculate they would choose to liquidate and take profit home instead of holding them for a long time. It makes sense that they have waited a long time and naturally want to make the best of what they are getting rather than playing the risky crypto game again amid uncertainty.

Selling pressure is expected to mount if many creditors choose to do that. It will be multiplied with the selling activity of the German Government. It is selling seized tokens in the market. Justin Sun, the Founder of Tron, has offered to buy those tokens off-market to reduce the impact on their price; however, there is no update if the Government agrees with that idea.

The German Government reportedly holds 40,359 Bitcoin tokens. It last moved BTC worth $175 million.

Bitcoin is under pressure, and the effect is evident from the broader sentiment within the crypto market. The market cap is down by 7.98% to $1.98 trillion. The FGI has awarded 38 points to global cryptos.

There are projections that showcase a bull run in the future. Bitcoin could jump as high as $76,844 in the next 30 days and $64,878 in the next 5 days. The monthly surge would translate to 41.41%, and the 5-day jump will be approximately 19.39% from the current value.

Ethereum slipping below $3,000 has gained a lot of attention considering the approval of Spot Ether ETF is on the table. ETH has lost 9.21% of its weight in the last 24 hours and 16.08% in the last 7 days.

Erica Lee

Erica is a finance professional who has over a decade of experience in the finance sector as a management consultant. After years of reporting on forex, stock markets, and finance, she now contributes her strong financial skills with the CoinNewsSpan team. Since 2014, she has been deeply involved in the blockchain and cryptocurrency space. She believes that blockchain technology has tremendous potential to make our lives better.

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