Today's Bitcoin News: Mt Gox Moves BTC Billions of Dollars, Bitcoin Price is Pressured!

Bittime - The price of Bitcoin (BTC) fell below $57,000 (around IDR 925 million) again on Thursday evening. How can the price of Bitcoin plummet? Check out today's Bitcoin news in this article!

The price drop occurred after the defunct Mt Gox crypto exchange began moving nearly 47,229 BTC (around $2.71 billion or Rp. 44,437 billion) to another wallet address. 

Bitcoin Price Drops

This largest crypto asset fell 3.45% yesterday, but is currently experiencing a slight increase of 0.3%. At around 8pm EST, Mt Gox moved $2.71 billion worth of Bitcoin from their cold storage to an address.

Crypto traders are closely watching the payment developments from Mt Gox. In addition, they observed movements by the governments of the United States and Germany, which are among the largest publicly known holders of Bitcoin.

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At the end of June, this defunct Bitcoin exchange announced something interesting. They will start distributing funds worth more than $9 billion (around Rp. 146.5 trillion) in the form of Bitcoin, Bitcoin Cash and fiat currency to its creditors starting in early July. 

This means around 142,000 Bitcoins ($8 billion or Rp. 131 trillion), 143,000 Bitcoin Cash ($45.9 million or Rp. 747 billion), and 69 billion Japanese Yen worth of fiat currency ($428.7 million or Rp. 7 trillion).

Information from Presto Research

Peter Chung, head of research at Presto Research, said that Mt Gox's creditors largely consisted of claims funds, defunct crypto exchange Bitcoinica and individual creditors. 

"We believe they are mostly loyal BTC investors who are 'diamond-handed' (holding their assets firmly even when prices fall) so selling will be limited," Chung told The Block.

"Liquidity providers (LPs) for claim funds (e.g. Fortress) are wealthy old-school Bitcoin investors looking to accumulate more at a discount. Bitcoinica can't do anything with their assets until they go through their own bankruptcy process," Chung added. 

"Today's group of individual investors are also 'diamond-handed' because they have resisted aggressive offers from claim funds over the past 10 years. 'Weak-handed' creditors have already had many opportunities to exit, and it is likely that they all already did it."

Bitcoin Selling Pressure

Mt Gox payments are cited as the main reason behind Bitcoin's recent weak performance. Some experts predict Bitcoin prices will continue to fall as the increased supply of 142,000 BTC to the market will add selling pressure for traders.

"While creditors will likely sell their BTC from Mt Gox, the selling pressure may not be as great as many think, as creditors could sell their claims earlier in the bankruptcy claims market," said Nick Ruck, BitU Protocol's head of growth. 

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"Bitcoin is perhaps the most liquid digital asset market that can absorb this pressure, and there is still demand for cheaper prices in the short term, as many expect the bull market to continue in the long term."

Presto's Chung explained that the Mt Gox payout will occur between July and October, "so that can be used as a reference" to estimate how long the selling pressure will last.

"Of note, the selling pressure will be stronger for BCH (Bitcoin Cash) than for BTC, as BCH does not have a strong investor base like BTC, so creditors will probably cash out quickly as with any other airdrop. Plus, the market liquidity is much thinner than BTC – could be 1/50 Our estimates suggest BCH selling pressure (measured as a percentage of average trading value) will be four times greater than BTC.”

“Mt Gox distribution is one of the biggest uncertainties in the market for quite a long time,” Ben El-Baz, managing director of HashKey Global, told The Block. 

"Personally, I think this is bullish in the long term although this uncertainty will eventually be dispelled when distributions begin in July. There are still many long-term market structural factors to remain positive, such as the expansion of more institutional-friendly ETFs, changes in interest rate policy, and the possibility of crypto policy changes in the United States.”

Short-Term Threats and Long-Term Hopes for Bitcoin

Analysts at JP Morgan said last week that they expect Mt Gox creditors to sell some of their Bitcoin receivables, which in turn would pressure the market. However, these analysts remain optimistic and estimate that recovery will occur starting in August.

Mt Gox, founded in 2010, was once the world's largest Bitcoin exchange until the platform suffered a major security breach in 2014, resulting in the loss of 850,000 or more Bitcoins. This incident tarnished the company's good name and forced it to go bankrupt.

Despite Mt Gox's bankruptcy and potential selling pressure in the short term, experts still see positive prospects for Bitcoin in the long term. 

Factors such as the expansion of institutional-friendly Bitcoin ETFs, changes in interest rate policy, and potential shifts in crypto policy in the United States all provide hope for Bitcoin's bright future.

Only time will tell how exactly Mt Gox payments will impact the Bitcoin market. 

However, traders and investors should still pay close attention to this situation and consider the various factors that may affect Bitcoin's price in the short and long term.

How to Buy Bitcoin (BTC) on Bittime

You can buy and sell Bitcoin (BTC) in an easy and safe way through Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Bitcoin (BTC) available on Bittime with market pair BTC/IDR. To be able to buy BTC IDR Of Bittime Make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Study Complete guide on how to buy Bitcoin (BTC) on Bittime. 

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