After the Mt. Gox rehabilitation trustee, Nobuaki Kobayashi, announced the start of repayments to creditors in July, the crypto market experienced a wave of heightened volatility. The uncertainty around how Mt. Gox customers and creditors would handle the $8 billion in payouts sent shockwaves through the entire market, sparking fears of a potential sell-off.
Here’s what to expect ahead.
During the first round of Mt.Gox repayments, through different exchanges led by Kraken, the Bitcoin price dropped from $63k to hovering around $53k in two weeks.
This significant drop left investors concerned about the potential for more turbulence as further payments are processed.
According to on-chain analysis by Arkham Intelligence, Mt. Gox appears to be gearing up for additional creditor payments. Strategic wallet movements were detected, with Mt. Gox emptying four of its wallets in the last 24 hours after receiving approximately $370 worth of Bitcoin from Kraken.
Now, with 44.89K BTC consolidated in a cold wallet, Arkham Intelligence suggests that creditors who missed out in the initial round of payments could soon see their funds.
Historically, Bitcoin’s price has often mirrored the movement of gold, and Wall Street analysts predict that a significant crypto market shift may be looming. The fear of further market capitulation seems to have eased, with Bitcoin’s Fear and Greed Index at 59%, indicating growing investor confidence and greed.
While the upcoming Mt. Gox repayment of nearly $3 billion could spark short-term bearish volatility, many experts believe the market will recover. A bullish cycle is expected to take off in the fourth quarter, signaling potential opportunities for long-term investors.
Is the fear surrounding Mt. Gox repayments justified? Let us know your take.
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