Breaking News: Mt. Gox Bankruptcy Redemption Sparks Selling Pressure on Bitcoin and BCH Prices
In a recent note from Kaixo Research, fears of selling pressure stemming from Mt. Gox's bankruptcy redemptions are proving to be valid. The former exchange is set to return approximately $9.5 billion in BTC and 143,000 BCH, worth around $73 million, to its customers. This announcement has created uncertainty in the market as investors contemplate selling their holdings.
Kaixo Research has reported that selling pressure on BCH intensified on exchanges like Binance and OKX even before the official announcement. This pressure was most noticeable at the end of Asian trading hours on July 4, with significant sell orders being executed on Binance around 9 am UTC.
The impact on BCH liquidity was stark, as price slippage for large market orders reached its highest level in over a month across most exchanges. This lack of liquidity was evident on platforms like Itbit and Bybit, where slippage rose significantly on July 5.
"Strong selling pressure related to the Mt. Gox repayment event has significantly impacted BCH liquidity," noted Kaixo Research. This liquidity issue is reflective of the broader market's reaction to the repayment news.
Mt. Gox, once a dominant force in the crypto exchange space, was forced into bankruptcy in 2014 following a massive hack that resulted in the loss of 740,000 Bitcoin. The recent announcement of repayments has added to selling pressure on Bitcoin and the broader crypto market, leading to a significant drop in prices.
Exchanges approved by the trustee to process repayments include Bitbank, BitGo, Bitstamp, Kraken, and SBI VC Trade.
In conclusion, the Mt. Gox bankruptcy redemption event has had a substantial impact on Bitcoin and BCH prices, with selling pressure intensifying across the market. Investors should stay informed and be cautious as they navigate these uncertain times in the crypto space.