The first Bitcoin test transactions has been made from Mt. Gox, the non-functioning crypto exchange that was hacked in 2014.
Those transactions has sparked worries among some BTC holders since over 140,000 Bitcoin that were lost are now going back to the victims. Quite a few of the early Bitcoin investors that held their risky bet on Mt. Gox bought BTC for below 500 USD.
Even if the current value stands slightly above 57 400 USD, there might be more sellers coming in the next few days. But for the long term BTC investors, it would obviously be way better if some of the funds from MtGox went into some of the leading Bitcoin casinos instead. That way, it would not be transferred immediately into fiat.
What happened today with MtGox and the Bitcoin crash today?
Mt. Gox that was founded in 2010 was once the largest bitcoin exchange, but they collapsed in 2014 after a massive hack resulted in the loss of approximately 850,000 bitcoins. This event had a significant impact on the cryptocurrency market and trust in digital asset exchanges.
In 2013, Mt. Gox handled around 70% of all bitcoin transactions worldwide during that year, so it was the most obvious site to hack. In February 2014, Mt. Gox suspended crypto trading, closed its website and exchange service, and filed for bankruptcy protection. The exchange announced that approximately 850,000 bitcoins were missing and likely stolen.
The Mt. Gox activity today includes Bitcoin transfers to exchanges such as Kraken and Coinbase which seem to have sparked a sell off among traders, short sellers and more short term focused investors. Bitcoin (BTC) has been rather stable the last months, but saw a downturn slightly below 57 000 USDT as worst today, following a little re-bound when writing this article.
The stolen assets (both BTC and BCH) are set to be distributed to the affected clients this month, most likely before the 15th of July, 2024. Analysts are therefore expecting Bitcoin to re-bound after the sell off pressure in the end of July, 2024. Crypto Lists expect that the Bitcoin Cash price might take a harder hit than Bitcoin itself.
How was the recovery and rehabilitation of BTC handled?
It was a long recovery process that lasted for over one decade. In 2018, it was reported that around 200,000 bitcoins were found in an old digital wallet, which became part of the assets to be returned to creditors.
The Tokyo District Court approved a civil rehabilitation plan to repay the creditors according to a PDF file on MT Gox website, which involved liquidating the recovered Bitcoins and other assets. So in fact, many of the BTC was already sold several years ago.
An intention to sell more Bitcoin?
Data from Arkham Intelligence shows that what seems to be the Germany Government has been active in selling Bitcoin lately. Over 175 million worth of Bitcoin has been moved and Miguel More from Arkham was telling CoinDesk that such a large move may indicate an intent to sell coins. Markus Jalmerot, the co-founder at Crypto Lists agrees, and think that more BTC would be moved to long-term and safer cold-wallets such as Trezor and Ledger if the intent was to keep them.
The trustee overseeing the Bitcoin distribution has been trying to minimize market impact by not dumping large quantities of at once. Efforts are being made to stagger the payments and offer various options to creditors to reduce the risk of a massive sell-off. Creditors of Mt. Gox have been waiting for years to receive their payouts, which could be in the form of cash, bitcoin, or bitcoin cash.
The liquidation of a large number of bitcoins could potentially lead to significant market movements. If a large number of creditors decide to sell their bitcoins at once, it could put downward pressure on bitcoin prices, causing a sell-off.
Markus and Crypto Lists are in fact surprised that BTC has not moved down more the last 3 months, and think there might be a fallback before the final bullrun takes place. However, before the market falls more – many investors that are often also gamblers, might consider playing on a bitcoin casino or two.
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