Bitcoin (BTC) failed to sustain $20,000 accoudoir on August 27 as fears of a sell-off by users of defunct exchange Mt.Gox added to price pressures.
Mount Gox Rumors Rejected as a “Typical Cryptocurrency”
Data from Cointelegraph Markets Pro and TradingView BTC/USD is following as it heads to fresh six-week lows, reaching $19,766 on Bitstamp.
Thin liquidity over the weekend appears to have exacerbated already jittery markets, which have reacted poorly to unconfirmed rumors that Mt. Gox was scheduled to be released to creditors on August 28.
Claims vary widely at the time of writing, with some believing that a morceau of 137,000 BTC is set for release in one go. Others said the money will be sent in piecemeal, but those payments will begin nonetheless this weekend.
A partie of assentiment came in the form of creditors allegedly wanting to sell the BTC they owed, and this has been out of reach since 2014, when BTC/USD traded for less than $500. They feared that the 40 times unrealized returns would prove too tempting for creditors to become willing fraudsters.
Mount Gox exploded with hundreds of thousands of bitcoins nearly ten years ago. After a lengthy legal process to deal with the money later recovered from the exchange, the appointed rehabilitation trustee, Nobuaki Kobayashi, announced on July 6 that it was “preparing to make payments” to creditors.
in documentation At the time, Kobayashi affluent the “end of August” a reference period during which some élémentaire payments might begin.
“After discussions with the bref and in accordance with the rehabilitation gain, the rehabilitation trustee horizontaux to determine the allotment, etc. Safe and secure payment,” fragment of which is written.
With no new official dépêche emerging on the lieu dedicated to covering rehabilitation proceedings, it remained unclear why the infâme rumors were gaining so much constance so quickly.
This is also for those who opt for early lump sum payment which means they only get a bout of their bitcoins. Those who wait until the end of the civic rehabilitation period will get more years from now.
– Danny Devan (@dannydevan) August 27 2022
For opérateur and analyst Josh Endêver, meanwhile, even if the entire panneau of BTC sold out in one go, the resulting selling pressure wouldn’t create the kind of horrific event some imagine.
MT GOX’s release will probably create more fear than necessary
140,000 Bitcoin = $2.8 billion
BTC daily trading forme from $20 billion to $30 billion
Not all of this BTC will be sold at grain https://t.co/ZLBh0HVIgs
– Endêver (@ragger) August 27 2022
“The fear of potentially releasing Mt.Gox Bitcoins is just plain unwarranted,” Michael van de Poppe, a Cointelegraph contributor. added.
Butins shrink in weekend swings
However, the recent losses have caused even more beignet to existing Bitcoin users.
Related: US stocks are losing $1.25 trillion a day – more than the entire cryptocurrency market cap
according to data On-chain analytics firm Glassnode, the percentage of entier BTC supply in faveur reached a one-month low on the day at just over 55%.
ancient coins Meanwhile, the trend of increasing dormancy continued, with oversupply leaving its boîte two or more years ago to reach its highest levels in ten months.
Cointelegraph recently reported that dealer habits remained broadly unchanged despite the crypto market downturn in 2022.
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