News
Bitcoin collapses as Mt. Gox begins distributing funds to creditors
Alex Dovbnja
Will this be a major bearish catalyst for Bitcoin?
Continue reading U.TODAY
Google News
Bitcoin (BTC) price suffered a sharp decline after Mt. Gox transferred Bitcoin worth $5.1 billion in a new wallet.
Alex Thorn, head of research at Galaxy Digital, predicted that most of those BTC will be held. However, the analyst expects strong selling pressure for Bitcoin Cash (BCH).
Thorn believes these assets are currently being consolidated before possibly being transferred to creditors. Therefore, recent transfers do not mean refunds are imminent.
The analyst added that many creditors were offered to sell their loans, but they refused to do so. “There’s a lot of speculation on my part, no doubt. Even a small percentage of sales could move the market,” she said. added.
Mt. Gox creditors, hit by the collapse of the major Bitcoin exchange in 2014, have been trying to recover their funds for a decade. Analysts believe it is reasonable to view the eventual distribution of the funds as a bearish catalyst.
After peaking at $70,601 on the Bitstamp exchange on May 27, the price of the leading cryptocurrency plummeted by nearly 4.6%.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.