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- Bitcoin is facing pressure amid Mt.Gox payouts, with experts like Alex Thorn highlighting the potential impacts on Bitcoin Cash.
- Contrasting payment strategies by Mt.Gox, Gemini and FTX have raised questions about market stability and investor sentiment.
The year 2024 was considered one of the luckiest years for me Bitcoin [BTC]especially with the launch of the Bitcoin ETF, which reached a new all-time high of $73,000, and the expected Bitcoin halving event.
However, as the cryptocurrency community prepares for the site to receive full and final approval Ethereum [ETH] ETF In July, BTC appears to have taken a back seat.
In fact, at the time of writing, while ETH is up 1.58% over the past 24 hours, BTC is flashing red candles on the daily charts and is trading at $61k.
What is the reason behind the fall of Bitcoin?
While many blame it on Mt.Gox Payment Plan As a reason behind the decline of Bitcoin, Alex ThorneGalaxy Digital’s head of company-wide research offered a different perspective.
bear Thorn, Bitcoin Cash [BCH] I was more impressed. Expanding on his point, he took to X (formerly Twitter) and said:
Source: Alex Thorne/X
Here, Thorne refers to the massive hack of Mt. Gox in 2014, which resulted in the loss of 740,000 bitcoins (worth $15 billion today).
Installments, starting in July 2024, will be paid in Bitcoin and BCH. This could increase selling pressure on these cryptocurrencies, as creditors will obtain their newly acquired assets and possibly sell them.
Possible solution
To monitor this situation, several executives have suggested relying on Bitcoin exchange balances as a reliable indicator of Bitcoin price strength.
However, in a recent post on X, a famous commenter Matthew Hyland He criticized the importance of reducing the exchange offer and described it as “exaggerated.” He explained,
“The supply side is overrated IMO. Bitcoin prices fell on exchanges during the entire bear market, and yet, the price of Bitcoin continued to fall with it. In the long run, this is important, but in the span of several years, it has shown that it is not.
Source: Matthew Hyland/X
Well, it is important to note that this is not the first time Mt.Gox has done something like this.
Source: BAT/X
Mt.Gox, not the only one!
In addition to Mount Gox, twinIt also announced its plans to compensate users affected by the discontinued Gemini Earn program.
The founders spoke to X (formerly Twitter) and highlighted that on May 29, Earn users received $2.18 billion in digital assets.
Furthermore it, FTXThe cryptocurrency exchange, which underwent bankruptcy proceedings last year, also revealed its plan to settle its debts.
However, according to analysts from Search K33However, the impact of these installments on market sentiment may differ from other creditor settlements.
Unlike entities like Mt. Gox and Gemini, which plan to repay creditors using cryptocurrencies, and FTX intend to carry out cash repayments.
Source: K33 research
This difference in payment methods could affect investors’ opinions and market stability in different ways.
