Analysts, Mt. He believes that Gox’s crypto refund, coupled with the Bitcoin spot ETF rejection, triggered a drop in BTC price. Bitcoin tokens, which the Mt.Gox exchange is expected to return to investors and traders, were purchased for between $100 and $1,000. According to crypto analyst Ekta Mourya, this could trigger a cascading sell-off in Bitcoin.
Mt. Gox prepares to return lost Bitcoins (BTC) to traders
cryptocoin.com As we reported, the defunct cryptocurrency exchange’s plan to return $8.5 billion worth of Bitcoin to traders and investors has received final approval from its board of trustees. The recovery plan is now final and binding. In addition, compensation will be paid to creditors following the approval of a Japanese court. Mt. Gox was once the largest Bitcoin exchange in the world. Losing BTC owned by thousands of customers, the exchange closed in early 2014 and traders have been waiting for their lost funds to be recovered ever since.
The exchange lost 850,000 BTC at the time of closing and is now ready to return 141,686. The Tokyo-based exchange plans to recoup rights holders more than $8.5 billion in Bitcoin assets ($60,000 for each BTC). A Tokyo District Court has now issued a “final and binding” regulation in response to a 2018 petition filed by creditors.
CryptoWhale, a crypto analyst by the pseudonym, believes that recovering lost Bitcoins will trigger a crash in BTC price. The analyst argues that the BTC tokens that Mt.Gox plans to return were purchased at $1,000 or less:
As creditors’ demands are met, BTC tokens are likely to start flooding exchanges. Analyst Ekta Mourya reminds that an increase in Bitcoin balance on exchanges has historically increased the selling pressure on the asset. The analyst makes the following assessment:
The recent rejection of the Bitcoin spot ETF by the Securities and Exchange Commission (SEC) is expected to fuel the bearish trend among traders and investors, with 141,686 BTC recovery confirmed.
Evaluating the BTC price trend, FXStreet analysts predict that BTC will drop to $54,000 when the correction begins.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.