Mt. Gox has moved to initiate the settlement of $9 billion it owes to creditors. The defunct crypto exchange platform last moved 47,229 Bitcoin tokens to another wallet. They were collectively valued at $2.71 billion at the time of the transaction. The transaction was executed by one of the three wallets of Mt. Gox a day after all three wallets sent a small portion of Bitcoin to multiple wallets.
Also, the move comes days after the platform announced that it would soon begin to make payouts to creditors in Bitcoin, Bitcoin Cash, and fiat currencies. There were reports that Mt. Gox would not directly release settlements. Instead, it will transfer funds to multiple exchange platforms and then process further customer transactions within 90 days of receiving funds.
Creditors bought those tokens in 2013 and would be sitting on a large profitable sum when they get their dues repaid. This fueled a series of downfalls across the crypto market, with Bitcoin being affected the most. Bitcoin ($BTC) has slipped way below $60,000 and can be seen hovering around $54,300. It is largely the selling pressure that is pulling the flagship crypto down. Others, like ETH and several altcoins, are following the trend.
Rachael Lucas has acknowledged this. BTC Markets’ Crypto Analyst said in an interaction with the media that Mt. Gox’s significant payout, which translates to $9 billion, was expected to add a lot of selling pressure while the market tries to absorb additional supply.
BTC’s values started shaking when the defunct exchange platform announced its plans to roll out settlements.
Bitcoin is currently listed at $54,340.34, down by 7.68% in the last 24 hours and 11.67% in the last 7 days. There is a notable uptick in 24-hour trading volume, but the market cap has remained down by over 7%. The volatility is 5.11%, and the 14-day RSI is 36.21. Near-term BTC price predictions have come down the ladder. The next 5 days are projected to fetch a value of $68,597 for an upswing of 17.54% from the current value. The next 30 days could see a jump of 37.37% to take the value to $80,170.
Bitcoin was expected to hit rock bottom anyway. A value of $60,000 acted as a strong resistance zone. There was an accumulation phase when the values were consolidating between $61,000 and $64,000. Then came a surge to redefine the range of $67,000 and $70,000. A bullish speculation was that it would soon surpass the ATH of around $74,000 and venture out to bank $84,000.
Needless to say, that has not happened for Bitcoin.
Mt. Gox will eventually roll out settlements worth $9 billion that it owes to the victims of the 2014 hack. Heavier fluctuations are expected, and the value may dance around $55,000 for a while.