The post MtGox Begins Repayments; Will Crypto Market Crash More? appeared first on Coinpedia Fintech News
After more than 10 years of waiting, the Mt.Gox cryptocurrency exchange users, who filed for bankruptcy protection and initiated a liquidation process in 2014, have officially begun receiving repayment. According to the announcement on Friday, July 5, 2024, the rehabilitation trustee paid some creditors in Bitcoin (BTC) and Bitcoin Cash (BCH).
The defunct crypto exchange announced that the rest of its users need to fulfill all the set conditions to receive their repayments in different exchanges.
Over the years, the cryptocurrency exchange has attempted to recover all the lost Bitcoins but has not succeeded fully. However, the birth of BCH will be a huge welcome for Mt.Gox creditors. Moreover, the defunct exchange previously announced that users would be repaid in denominations of the dollar value at the time of closure and not by the current Bitcoin value.
Impact Of the Mt.Gox Bitcoin Distribution
The onset of Mt.Gox Bitcoin distribution has instilled notable fear among crypto traders as depicted by the ongoing selloff. For the first time since February this year, Bitcoin price has traded below $55k after closing below the 200-daily Moving Average (MA).
The cryptocurrency industry registered heavy liquidations of nearly $700 billion, similar capitulation to the FTX-induced selloff. The heightened crypto sell-off was also fueled by the ongoing Bitcoin dump by the German and the United States governments.
What Next?
Despite the heightened fear in crypto, most analysts believe a rebound is slated for the fourth quarter or early next year. Moreover, despite the recent fourth Bitcoin halving and approval of spot BTC and Ether ETFs in various jurisdictions, the crypto industry has been deviating from the ongoing stock market bull run.
From a technical standpoint, the Bitcoin price could find a solid support level around $52k, which would mean further losses for the altcoins.