Bitcoin Holders Stand Firm as Mt. Gox Repayment Starts Via Kraken and Bitstamp
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Mt. Gox Creditors Finally Receive Bitcoin Payouts
Kraken has completed the long-awaited distribution of Bitcoin (BTC) and Bitcoin Cash (BCH) to Mt. Gox creditors. This milestone marks a significant advance in resolving the decade-long insolvency issue of the Mt. Gox exchange. Just a day later, Bitstamp began its repayments, distributing BTC, BCH, and Ether (ETH) after receiving the funds from the trustee.
Creditors are expected to have full control of their assets within a week after necessary security checks. With over $9.4 billion worth of Bitcoin owed to around 127,000 creditors, this repayment is a monumental task. However, creditors in the UK may face a few more months of waiting.
Bitcoin Holders Show Resilience Amid Distributions
Data from CryptoQuant reveals that most Mt. Gox creditors are choosing to hold their Bitcoin rather than sell. Arkham Intelligence reported the transfer of $2.47 billion worth of BTC to new wallets, with over 5,000 BTC worth $329 million withdrawn from exchanges in the last 24 hours. These long-term Bitcoin proponents prefer BTC over USD payouts to avoid capital gains taxes.
Despite the start of repayments, Bitcoin prices have remained stable, recovering from a low of $53,500 to trade above $65,000 before slightly falling due to market sentiment. The repayment process hasn't triggered significant sell-offs, as most creditors continue to hold their assets. CryptoQuant's data shows no notable spikes in trading volume or BTC outflows on Kraken following the distributions.
Mt. Gox still holds approximately 80,000 Bitcoin, valued at around $5.2 billion. The last major transaction from Mt. Gox was on July 24, 2024, when 382 BTC worth $25 million was sent to Bitstamp. This action caused some fear, uncertainty, and doubt (FUD) in the market, but on-chain data indicates minimal immediate sell pressure.
A Reddit poll in the Mt. Gox insolvency subreddit showed that 56% of creditors do not plan to sell their Bitcoin, while 20% plan to sell all their holdings, and the rest will sell a portion. Despite some analysts predicting that up to 99% of creditors might sell their Bitcoin, potentially driving prices into bear market territory, the market has shown resilience.
Jean-Baptiste Graftieaux, global CEO of Bitstamp, expressed pride in helping Mt. Gox investors reclaim their assets, noting the profit many will make despite the prolonged wait. Ki Young Ju, founder and CEO of CryptoQuant, reported no significant spikes in trading volume or BTC outflows on Kraken since the distributions began.
Conclusion
The Mt. Gox Bitcoin repayment marks a pivotal moment in cryptocurrency history. Despite fears of market instability, creditors' holding patterns and Bitcoin's price resilience demonstrate the maturing crypto ecosystem. As distributions continue, the industry watches closely, balancing between long-awaited justice for creditors and potential market impacts.
FAQs
1: How much Bitcoin is being repaid to Mt. Gox creditors?
Over $9.4 billion worth of Bitcoin is owed to approximately 127,000 creditors. Kraken and Bitstamp have begun distributions, with creditors expected to have full control of their assets within a week after security checks.
2: Are creditors selling their Bitcoin immediately?
Most creditors are choosing to hold their Bitcoin rather than sell. A Reddit poll showed 56% of creditors do not plan to sell, 20% plan to sell all holdings, and the rest will sell a portion.
3: How has the Bitcoin market reacted to the Mt. Gox repayments?
The market has shown resilience, with Bitcoin prices remaining stable. Data from CryptoQuant shows no notable spikes in trading volume or BTC outflows on exchanges following the distributions.
4: How much Bitcoin does Mt. Gox still hold?
Mt. Gox still holds approximately 80,000 Bitcoin, valued at around $5.2 billion. The last major transaction was on July 24, 2024, when 382 BTC worth $25 million was sent to Bitstamp.
This article has been refined and enhanced by ChatGPT.
