Bitcoin Drops to $61K as Fallen Exchange Mt.Gox Plans to Begin BTC Repayments Next Week

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After waiting for ten years, creditors of bankrupt crypto exchange Mt.Gox will begin receiving repayments in BTC at the start of July. The announcement was made on Monday by Nobuaki Kobayashi, a Mt.Gox Rehabilitation Trustee.

Kobayashi said the fallen exchange had put measures in place to ensure reliable and safe repayments to all affected creditors. He added that Mt.Gox had partnered with several leading exchanges to support repayments.

Why Mt.Gox Cease Operations

Mt.Gox, a Japanese crypto exchange that once handled over 70% of BTC’s trading volume, was declared bankrupt in 2014 following a series of cyber attacks that led to the loss of over 700,000 Bitcoin worth $400 million at the time.

Since the incidents, several crypto trading platforms have been formed, promising to prioritize the safety of user funds. One of them is Quantum Income Pro. This platform adopts AI technology to improve the trading experience for crypto traders.

Meanwhile, Kobayashi’s announcement has caused Bitcoin’s price to plummet significantly. The coin touched $60,000 on Monday, a level it hadn’t seen since the start of May. However, the bulls managed to defend key support levels, pushing BTC to $61,213 as of this writing.

Bitcoin’s Price Performance in 2024

Bitcoin, the world’s largest cryptocurrency by market capitalization, has been trending downwards since the beginning of June, a few months after peaking at $73,776. The coin rallied massively earlier this year after the United States Securities and Exchange Commission approved Bitcoin spot exchange-traded funds. 

However, the low demand in recent weeks has allowed the bears to drag Bitcoin to lower levels. According to data from CoinGecko, BTC has fallen 6% over the past seven days and is down 12% in June.

Analysts anticipate that Bitcoin will fall further if Mt.Gox creditors decide to sell their reclaimed BTC immediately after being compensated. Onchain analytics platform Spot on Chain reports that Mt.Gox is holding 141,680 Bitcoin worth roughly $8.7 billion. If creditors cash out their BTC claims, the Bitcoin market will lose all the inflows seen in January, when ETFs entered the US market.

German Authorities Intensify Selling Pressure

It is worth mentioning that the Mt. Gox repayment plan isn’t the only factor fueling the current bearish trend. The German authorities have also accelerated selling pressure on Bitcoin. They have started dumping BTC worth $3 million seized from a movie piracy platform Moviesk.to four years ago. These authorities have already sold Bitcoin worth $320 million in the past 48 hours.

In other news, Bitcoin’s latest price drop has led to the liquidation of over $330 million worth of long crypto positions. For starters, long positions are bets on an asset’s price that will surge in the future. Furthermore, as mentioned at the beginning of the article, the Quantum Income Pro trading robot features an advanced encryption mechanism for protecting user data.