The price of Bitcoin has fallen below the $60,000 mark, potentially due to the $9 billion refunds from Mt. Gox to creditors.
Selling pressure from Bitcoin whales, including a $180 million sale in three minutes, may have contributed to the price drop.
Mt. Gox owes $9.4 billion to 127,000 creditors and had announced the start of transfers as early as July.
Bitcoin Price Fall
Bitcoin has lost nearly 5% in 24 hours, reaching a local low of $59,600. The leading cryptocurrency is down 1.8% for the week, according to CoinMarketCap. Bitcoin’s price has been trending downward since June, with a decrease of nearly 18% in the second quarter of 2024.
Influence of Mt. Gox on BTC Price
The dip below $60,000 for Bitcoin could be attributed to the potential start of refunds to Mt. Gox creditors, scheduled to begin in early July. Mt. Gox, a bankrupt cryptocurrency exchange, might have started repaying its creditors.
Potential Selling Pressure
Over $9.4 billion in Bitcoin and Bitcoin Cash is owed to approximately 127,000 Mt. Gox creditors, who have been waiting over 10 years to recover their funds. This could mean that many investors will cash in their profits after a decade. However, the $9 billion from Mt. Gox could also be absorbed by institutional inflows into US-based Bitcoin ETFs.
These funds have accumulated over $52.5 billion in BTC since their launch in January, but the flows have significantly slowed down recently. After a week of strong outflows, Bitcoin Spot ETFs had a few positive days and eventually resumed net outflows yesterday.
An unknown whale sold $180 million worth of BTC in three minutes, an extremely high amount sold at market value in such a short period of time.
Another unknown whale deposited 1,723 BTC, worth over $168 million, on Binance in the past 24 hours, according to Lookonchain.
