Finance analyst Jacob King warns of potential Bitcoin price pressure. He predicts most Mt. Gox creditors will sell their repaid Bitcoin. King estimates $8.2 billion in additional selling pressure. On-chain movements suggest creditors have already begun selling. "No Bitcoiner will say this out loud, but the majority of the $8.2 Billion in $BTC that is set to be distributed back to ex-clients are going to be sold off," King stated on July 4. Mt. Gox announced the commencement of Bitcoin and Bitcoin Cash repayments on July 5. This news raises concerns about Bitcoin's price stability. Bitcoin has struggled recently. It traded above $60,000 but fell 18% in Q2 2024. King predicts further decline. "I understand this is controversial, but based on the current low demand volume, this will easily send BTC back into a harsh bear market," he said. Bitcoin's price dropped 3.9% to $55,250 in 24 hours as of 10:17 am UTC on July 5. It's down over 10% week-on-week. Despite market concerns, the repayments are positive for creditors. Mark Karpelès, former Mt. Gox CEO, expressed relief on social media. "Mt. Gox customers have finally started receiving Bitcoins! After over 10 years I wasn't sure anymore if it'd finally happen, but here we are finally!!" Karpelès wrote. Approximately 127,000 Mt. Gox creditors are owed $9.4 billion. Bitcoin's 8,500% price increase over the past decade may incentivize profit-taking. King expects 99% of creditors to sell. "Imagine billions worth of Bitcoin all being dumped gradually over the next several weeks. There is no way to spin this to be bullish," he concluded.

Bitcoin's value dropped to $61,000. And this is one of those rare occasions when the reason is obvious to anyone. The decline follows Mt. Gox's announcement of imminent creditor repayments. Mt. Gox Rehabilitation Trustee Nobuaki Kobayashi confirmed the news. Repayments in Bitcoin and Bitcoin Cash will begin in early July. The decade long wait is over. Yes, 10 years have passed since the exchange's collapse. "We have taken time to ensure safe and reliable repayment to creditors," the note stated. It outlined steps taken, including technical safeguards and regulatory compliance. Mt. Gox was once a dominant player in Bitcoin trading. It's hard to believe now, but it handled over 70% of Bitcoin's volume once. That was a pretty obvious centralisation, many people disliked. But then Mt. Gox collapsed. The announcement sparked market concerns. Fears of a potential sell-off caused Bitcoin's price to fall 6.5% from the previous day. It hit a low of $61,060 before slightly recovering. The price drop hit derivatives traders hard. Bitcoin long positions worth $90.78 million were liquidated in 12 hours. This data comes from CoinGlass, a derivatives analytics platform. Market fears may be justified. Three Mt. Gox wallets hold 141,686 BTC, valued at approximately $8.71 billion. Big moves like that often make waves on the market. A similar incident occurred on May 28. Bitcoin's price fell after funds moved to an unknown wallet. It was later clarified that repayments had not yet started. The repayment deadline was previously extended to October 2024. This suggests the reimbursement process could take up to four months.

Billions in Bitcoin linked to the defunct Mt. Gox exchange have been transferred to an unknown wallet. On May 28, a series of transactions moved 75,021 BTC, worth approximately $5 billion, sparking speculation and market reaction. Some analysts even think the move might have led to the recent Bitcoin 2% dip. The movement comes ahead of the planned return of Bitcoin holdings to Mt. Gox creditors.  Whale Alert, a crypto tracking service, reported multiple transfers within an hour. Blockchain explorer Arkham Intelligence noted 21 transfers from various Mt. Gox cold wallets. Most transactions involved around 2,000 BTC each. An additional 32,137 BTC were transferred later, pushing the total to over $5 billion. These transactions point to a single, unlabeled address. Despite this, Mt. Gox still holds nearly 138,000 BTC, valued at over $9.36 billion. The identity and intent behind these movements remain unclear, as Mt. Gox's trustee firm Nagashima Ohno and Tsunematsu have not commented. The sudden movement of such a significant amount of Bitcoin led to a 2% dip in Bitcoin prices. The market reacted cautiously, trading at $67,875 after the first transfer. Analysts had previously warned that such moves could unsettle the market. Creditors of Mt. Gox have been waiting for over a decade to reclaim their assets following the exchange’s collapse in 2014. The final repayment deadline is October 31, marking a critical date for those affected.