$9 Billion Refund from Mt. Gox: How Will It Impact the Bitcoin Market?
The Bitcoin market is bracing for a significant event as the defunct Bitcoin exchange Mt. Gox has announced plans to start refunding affected customers with Bitcoin (BTC) and Bitcoin Cash (BCH) as early as this week.
This announcement has garnered widespread attention and concern within the cryptocurrency community, with fears that it could exacerbate selling pressure on Bitcoin. Mt. Gox’s trustee reportedly holds approximately 140,000 BTC, valued at around $9.26 billion.
Mt. Gox was once the world’s largest Bitcoin exchange, but a security breach in 2014 led to the theft of a significant amount of Bitcoin, resulting in the exchange’s bankruptcy. The bankruptcy proceedings have been contentious and uncertain for years. Now, with the refund date approaching, market anxiety is intensifying.
Some analysts are worried about potential losses for Bitcoin, suggesting that the influx of a large amount of Bitcoin back into the market could cause significant price volatility. However, others believe the market’s reaction may be overblown.
These optimistic analysts point out that the Bitcoin market has developed substantial liquidity and resilience over the years. Additionally, some investors might opt to hold onto their Bitcoin long-term rather than sell immediately, which could mitigate short-term selling pressure.
Recent price trends indicate that the temporary impact of the Mt. Gox repayments may have already been absorbed by the market, further supporting the view that potential selling pressure might be alleviated.
As the cryptocurrency market enters July, analysts offer insights into Bitcoin’s price outlook based on historical trends and technical analysis.
Renowned crypto analyst Ali Martinez notes that after a poor performance in June, Bitcoin typically sees a strong rebound in July. Martinez highlights that the average return for Bitcoin in July is 7.98%, with a median return of 9.60%.
On the other hand, analysts identify $64,050 and $66,250 as crucial resistance levels. Breaking through these resistance points is essential for Bitcoin to potentially retest its all-time high of $73,700 reached in March this year.
