Bitcoin and the broader crypto market see an accelerated price slump as bankrupt exchange Mt Gox confirms its repayment date.
The unyielding bearish momentum in the crypto market has intensified in the last few hours, with Bitcoin hitting a low of $60,675 at press time. This new bottom further brings the premier asset down by over 15.6% from the $71,907 it sold for just two weeks ago.
Earlier today, Bitcoin briefly rallied to $64,382, stabilizing around $62K before the latest crash to the $60K region. The price slump emerged just as the bankrupt Japanese crypto Mt. Gox issued a crucial announcement about its repayment plans for investors.
Mt Gox Confirms Date of Repayment
According to Mt. Gox’s report, the necessary preparations for repaying creditors have been completed. As a result, it plans to commence distributing BTC and BCH in early July 2024. Moreover, Mt. Gox disclosed implementing the required regulatory measures to ensure a smooth and compliant repayment process.
Notably, the exchange’s troubled history dates back to February 2014, when it suspended trading, shut down its website, and filed for bankruptcy after 850,000 BTCs were stolen. The theft led to a protracted reimbursement process for users with trapped funds.
The exchange has finally reached a turning point, as users now have a date to expect reimbursement after a decade. However, Mt. Gox’s announcements concerning its repayment plan have repeatedly triggered significant sell-offs in the market.
Late last month, Mt. Gox transferred 140,000 BTC, valued at over $9 billion, to an anonymous address, coinciding with an update on its repayment plan. The plan allows stakeholders to choose between receiving direct repayment in BTC and BCH through designated exchanges or an equivalent cash amount.
Despite Mt. Gox’s assurance that no tokens were sold during the transfer, the crypto market reacted sharply. Bitcoin’s price plummeted from the $70,000 region to $67,000 within a few hours, highlighting the market’s sensitivity to Mt. Gox’s actions.
Now, the crypto market is again grappling with another Mt Gox-induced bearish pressure as market watchers are increasingly cautious about getting caught off guard when the exchange begins liquidating its Bitcoin reserve.
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