Bitcoin (BTC) failed to hold support at $20,000 on Aug. 27 as fears of selling by users of defunct exchange Mt. Gox added to price pressure.
mt. Gox rumors dismissed as ‘typical cryptocurrency’
Data from Cointelegraph Markets Pro and TradingView follows BTC/USD to new six-week low point, reaching $19,766 on Bitstamp.
Lack of liquidity over the weekend appeared to exacerbate already strained markets, which reacted badly to unsubstantiated rumors that Mt. Gox funds will be released to creditors on August 28.
At the time of writing, accounts vary widely, with some positing that 137,000 BTC was released in one go. Others said the funds would be sent in batches, but payments would still start this weekend.
Creditors reached consensus in the form of allegedly wanting to sell the BTC owed to them, which has been wiped out since 2014. Bitcoin/USD has traded below $500. They worry that the unrealized 40x return is too tempting for creditors to be willing liars.
Mountain. About a decade ago, Gox imploded hundreds of thousands of bitcoins. After a lengthy legal process to deal with the funds that were subsequently recovered from the exchange, Nobuaki Kobayashi, the appointed recovery trustee, announced on July 6 that he was “preparing to repay” creditors.
At the time of the filing, Kobayashi used “the end of August” as a reference period for possibly starting some initial payments.
“After discussions with the court, assignments etc. are set according to the rehabilitation plan, the rehabilitation trustee plan. The limited reference period starts around the end of August this year until the full or partial repayment as initial repayment is completed. , for safe and secure repayment,” some of which read below.
However, with no new official information appearing on the dedicated website covering rehabilitation procedures, it remains unclear why the sell-off rumours gained so much attention so quickly.
This is also the only y for those who choose to pay a lump sum in advance of people, that means they only get a fraction of the bitcoin. Those who wait until the end of their civil rehabilitation period will get more in a few years.
– Danny Devan (@dannydevan) August 27, 2022
Meanwhile, for traders and analysts For Josh Rager, even if all BTC were to be sold at once, the resulting selling pressure would not create the kind of doomsday event some imagined.
The release of MT GOX may Create more fear than needed
BTC daily volume $20B to $30B
These BTC will not be sold all at once https://t.co/ZLBh0HVIgs
– Rager (@Rager) 2022 Aug. 27
“Fears about possible Bitcoin release from Mt. Gox are unfounded,” Cointelegraph contributor Michaël van de Poppe added.
Profits squeezed on weekend volatility
Latest losses still for existing BTC hodlers brought more pain.
Related: US stock market loses 1.25 tons in one day—— Exceeds the entire cryptocurrency market cap
Overall BTC supply as a percentage of profits hit a one-month low on the day at just over 55%, according to data chain analytics firm Glassnode from on-.