Mount Gox Billions Could Crash Bitcoin In August

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Last Updated on 14 July 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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The tale of Mount Gox is for the cryptosphere what the Old Testament is for Catholics, or something of that sort. The first major Bitcoin exchange of it’s kind was based in the hippest part of Tokyo, Japan, namely Shibuya.

Only 4 years old, by the beginning of 2014 it was responsible for the trades of some 70% of all Bitcoins worldwide. In 2022 figures, that would be like Binance, Bitvavo, FTX and Crypto.com all on one platform.

Of course Mt Gox was mired in scandal when only a few months later, it abruptly ceased operations amid revelations of its involvement in the loss/theft of hundreds of thousands of bitcoins, then worth hundreds of millions in US dollars. In today’s figures, it’s billions of dollars.

Now, as the authorities handling the payout to the creditors of Mt Gox have decided to release a few billions of dollars worth of Bitcoins in August, many are wondering whether this could cause another Bitcoin crash.

Advertentie.

Rehabilitation Trustee

Some 137,000 BTC worth roughly $2.8 billion will thus be released next month and the Mt. Gox’s “Rehabilitation Trustee” Nobauaki Kobayashi has sent an email to the creditors asking them how they want to receive payment, either in Bitcoin, Bitcoin Cash or dollars.

Of course, many of the Mt Gox creditors have bought into Bitcoin at prices as low as $1000, some of them far lower. With Bitcoin now trading at around $20,000, the temptation to sell and cash in a great return will be huge. What will it mean for Bitcoin’s price though?

Primakov / Depositphotos.com