First Mover Americas: Bitcoin Slumps Below $54K as Mt. Gox Flags Repayments
Why did Bitcoin slump below $54K?
Bitcoin slumped below $54K due to Mt. Gox moving a significant amount of BTC to a new wallet, potentially preparing for creditor payments3. This caused concerns that creditors might sell their received coins, creating mass selling pressure in the market. Additionally, major altcoins suffered heavy losses, and only five mining rigs remained profitable for operators as Bitcoin prices fell.
What triggered Mt. Gox to move BTC?
Mt. Gox moved BTC due to the impending creditor repayments, as part of its bankruptcy proceedings. The exchange, which collapsed in 2014 after a major hack, began the process of distributing assets stolen from clients, with repayments made in Bitcoin and Bitcoin Cash.
How much BTC is Mt. Gox preparing to repay?
Mt. Gox is preparing to repay 140,000 BTC, worth around $7.3 billion at current prices, to its creditors. The repayments, which have been long-awaited by customers of the defunct crypto exchange, are set to commence in July 2024.