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BTC price recently fell below $60,000 despite a strong start in July. Investors remain cautious, especially with altcoins, fearing larger losses. Additionally, the potential impact of MTGOX repayments on the market cannot be ignored.
MTGOX and Crypto Decline
The decline in cryptocurrencies has continued since June. Investors eagerly awaiting a break above $70,000 were disappointed to learn that MTGOX repayments would begin in July. The fact that $60,000 is still holding is somewhat encouraging.
Have MTGOX repayments started? Capriole Investments founder Charles Edwards looks at the BTC transfer volume graph over the last 7-10 years and suggests that MTGOX repayments may have begun.
“The entire history of this graph disappeared because a massive amount of Bitcoin moved on the network, 10 times more than previous highs. 9 billion dollars. So who moved these? It seems MTGOX distributions are starting.”
The trustees of the exchange returning billions of dollars in assets will create a significant surplus in the market. Steady sales also confirm that this may have started. Moreover, the trustee’s statement clearly mentioned that repayments would be made throughout July.
The MTGOX Incident and Cryptocurrencies
Approximately 127,000 creditors will receive over $9.4 billion in BTC repayments. Investors who have been waiting for their funds for 10 years can sell BTC bought at very low prices for abnormal gains at current prices. In 2014, BTC was around $600 at its highest. This means a creditor with $1 worth of BTC would get 100 times that amount today. Those who bought at lower prices around $300 would get 200 times their investment. Truly satisfying figures.
ETFs have reached a total of $52.5 billion in BTC reserves to date. The story of supply scarcity was very popular a few months ago, but unless a major demand wave forms through the ETF channel, this surplus could drag markets down. Ultimately, the end of MTGOX FUD is another promising detail for the expected rally by year-end.
