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Brace For Impact: Mt. Gox Set To Inject 142,000 BTC And 143,000 Bitcoin Cash Into The Market- Here’s When

Tokyo-based Bitcoin exchange, Mt. Gox is preparing to release a substantial amount of Bitcoin (BTC) into the market, signaling the upcoming disbursement of payments to creditors who had been affected by its hack attack in 2011.  

Mt. Gox Set To Release 142,000 Bitcoin Into Market

Reports from Reddit reveal that the Kraken Bitcoin (BTC) and Bitcoin Cash (BCH) API interface have signaled that Mt. Gox is getting ready to release its substantial cryptocurrency and fiat holdings, which include 142,000 BTC and 143,000 BCH, and 69 billion yen. 

As of May 13, the interface began reading “payment in preparation,” indicating that funds would soon be distributed to creditors. The date for the anticipated disbursement has also been slated for October 31, 2024. 

This decision comes after years of undergoing legal proceedings and negotiations aimed at reimbursing creditors who lost funds following the Bitcoin exchange’s crash. Earlier in 2011, Mt. Gox was hacked, resulting in the loss of 850,000 BTC now worth over $51 billion. Shortly after the unfortunate attack, Mt. Gox filed for bankruptcy and has since been gathering funds to compensate creditors. 

Reports from a few customers have revealed that the exchange has begun distributing funds in fiat currency. One particular Reddit user disclosed earlier in April, that he had received USD payments into an HSBC currency account with zero fees. 

While the long-awaited distribution process comes as great news to creditors, the release of such a large amount of Bitcoin could have a significant effect on the current Bitcoin market. 

Additionally, discussions about whether creditors would sell or retain their Bitcoin holdings once they receive their funds have been circulating. Nonetheless, the disbursement process presents a step towards closure and recovery for victims of the exchange’s hack and bankruptcy. 

Will Creditors Sell Or Hold?

With the Bitcoin market presently in a fragile position after experiencing a series of declines following the halving event on April 20, the possibility of a large-scale sell-off could lead to drastic changes in the market, potentially resulting in a crash. 

Commenting on Mt. Gox’s 142,000 BTC distribution plans, a Reddit community member suggested that the exchange’s upcoming repayments could become a catalyst for the next BTC dump in 2024. 

In response, another Reddit user expressed doubt about the likelihood of a widespread sell-off, especially at the beginning of the bull market. The user surmised that investors who have been waiting for Mt. Gox’s payments for over a decade are unlikely to sell off their Bitcoin holdings quickly. 

Instead, he suggested that many creditors, like himself, would be more inclined to HODL their Bitcoin holdings, having acquired a deeper understanding of the pioneer cryptocurrency during the decade-long wait.

Bitcoin price chart from Tradingview.com

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Bitcoin Cash Rally Threatened As Exchange Drops BCH Following XRP Listing Rumors

Bitcoin Cash has followed the general growth trend of Bitcoin with the price almost clearing the $250 resistance before being rejected. Even though BCH maintains this bullish momentum, it is not completely in the clear following its delisting from one crypto exchange.

EDX Markets Delists Bitcoin Cash

In another unexpected blow, Bitcoin Cash (BCH) has been delisted from the EDX Markets crypto exchange. Users had first suspected that the exchange was ending support for BCH and rumors spread like wildfire through social media. Eventually, the crypto exchange will confirm these rumors, with a spokesperson revealing that EDX Markets was indeed no longer offering support for BCH.

Contrary to the norm, EDX Markets did not give any indication of why the cryptocurrency was delisted from the exchange. Rather, users were directed to sign up for the newsletter to get updates about listings, as well as check out the website for supported coins.

Interestingly, this is happening at a time when rumors have been circulating that EDX Markets might be planning to list XRP. This would make sense given that many exchanges have resisted the cryptocurrency after Ripple’s victory over the SEC. Since then, XRP’s volume has been on the high side and crypto exchanges have clamored for a chance to get a piece of the pie.

BCH Price Struggles To HoldOn

Following the rejection from the $250 level, the Bitcoin Cash (BCH) price has been hard-pressed to continue on its previous trajectory. The fall toward the $240 level shook out a good portion of longs before the bulls were able to take over once more.

However, the BCH daily trading volume is still seeing good momentum after rising 36% in one day. If anything, this shows there is still a fair amount of interest in the altcoin with trading garnering a lot of attention from market participants.

The major resistance to a BCH breakout currently lies at the $250 level. If the price is able to clear this resistance, then the rally is expected to continue and could touch $270 before losing steam. But it is still a long way from its yearly high of $300.

At the time of writing, BCH is trading at $243 with 3.75% losses on the weekly chart. However, it is performing much better in the last day after rising 2.23%.

Bitcoin Cash BCH price chart from Tradingview.com

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Bitcoin Cash Traders Move Into Profit, But Can The Rally Continue?

As the price of Bitcoin and the general crypto market has rallied, leading to a much-needed increase in price, Bitcoin Cash (BCH) investors are once again on a profitable path. The majority of investors are now in the green following its double-digit surge in the last week. But now the question posed is, will the price of BCH continue to maintain this surge?

Bitcoin Cash Short And Long-Term Holders Enjoy Profits

In a Thursday post, on-chain data tracking platform Santiment revealed that both short and long-term holders of Bitcoin Cash are doing quite well right now. The chart shared by the tracker showed that the average returns for 30-day and 365-day holders have risen above their average cost price.

This means that investors who got into the digital asset in the last month, as well as those who have been holding for a year, are the ones doing well right now. It is also the first time in 10 weeks that this cohort of BCH investors is seeing profit.

Santiment BCH

The data from Santiment is also backed up by that from another on-chain tracker IntoTheBlock. According to the latter’s data on its website, 59% of all BCH investors are seeing green compared to 38% sitting in the red and 3% in neutral territory. Furthermore, IntoTheBlock shows that 96% of holders have held for more than one year, with 3% holding between 1-12 months, and 1% holding for less than one month.

Combining the data from both trackers tells us that there are more long-term investors in profit compared to short-term investors. This fact reinforces the long-standing belief that buying and holding is usually the best way to invest in cryptocurrencies.

But Can BCH Hold Its Gains?

The fact that so many short and long-term holders are currently in profit can be attributed to the digital asset’s spike in the last week. Following the Grayscale ruling that saw the market surge, BCH’s price rose over 14%, bringing its value to the $220 level before the retracement. Most of these gains have been sustained so far, as evidenced by the high percentage of holders in profit.

However, Santiment points out in its report that for Bitcoin Cash to continue to rise, it would be up to the whales. This is because, during the price spike, there was an increase in whale activity in relation to the BCH token. So they likely played a part in the asset’s rise.

If the whales continue to be active and put buying pressure on the coin, then the price of BCH could continue to appreciate. However, a turn from buy to sell among these large holders would quickly crash the price, especially since the market is already feeling the euphoria felt earlier this week start to recede.

Presently, data from Coinmarketcap shows that Bitcoin Cash is trading at $219, a 14.57% increase in the last week.

Bitcoin Cash price chart from Tradingview.com