Mt. Gox Prepares to Repay Creditors via Bitstamp, Raising Concerns About Bitcoin Sell Pressure

Mt. Gox is preparing to repay its creditors via the Bitstamp cryptocurrency exchange. Recent on-chain fund movements indicate that this process is nearing execution.

Bankrupt cryptocurrency exchange Mt. Gox is preparing to repay its creditors via Bitstamp cryptocurrency exchange, according to recent on-chain fund movements.

On July 22, blockchain intelligence firm Arkham Intelligence flagged the first test transactions, indicating these payments might soon be executed.

The Mt. Gox address executed four small test transactions to Bitstamp deposit addresses, each transferring $1.

These transactions were part of a larger chain of movements, ultimately transferring 400,000 satoshis to Bitstamp cold wallets.

The exchange is one of five collaborating with the Mt. Gox Trustee to facilitate these repayments, with preliminary transfers typically denoting essential test transactions before the large-scale distribution begins.

Mt. Gox owes over 127,000 creditors an aggregate of 137,000 BTC (then valued at $9.4 billion), with many having waited over a decade to recover their funds.

The impending release has sparked concerns among crypto investors regarding potential sell pressure on Bitcoin’s price.

Finance analyst Jacob King predicted that up to 99% of Mt. Gox creditors might sell their Bitcoin as soon as they receive it.

In a July 4 post, he stated, “99% of those on Mt. Gox are going to sell their coins the moment they get it. Imagine billions worth of Bitcoin all being dumped gradually over the next several weeks.”

However, a Reddit poll suggests a different outcome. About 56% of Mt. Gox creditors indicated they intend to hold their Bitcoin, while only 20% planned to sell.

This disparity in predictions adds an element of uncertainty to the market's reaction once repayments commence.

Meanwhile, large Bitcoin holders, or whales, have continued their buying activity amid the Mt. Gox repayment preparations.

On July 17, a Bitcoin whale made a large purchase, acquiring 245 BTC, valued at nearly $16 million. This address has only traded Bitcoin twice in the past year, generating over $30 million in profit from these trades.

As of July 17, over 36% of the Bitcoin owed to Mt. Gox creditors had already been distributed, according to data from Arkham Intelligence.

The exact timing for the resumption of repayments is still unclear, but the recent test transactions indicate that the final preparations are being made for these payments on Bitstamp.

The above is the detailed content of Mt. Gox Prepares to Repay Creditors via Bitstamp, Raising Concerns About Bitcoin Sell Pressure. For more information, please follow other related articles on the PHP Chinese website!