Crypto Market Faces $313 Million Liquidations as Bitcoin Reaches $59,000 After Mt. Gox Announcement
The crypto markets, including Bitcoin (BTC) and Ethereum (ETH), are experiencing a significant downturn following reports that the former crypto exchange Mt. Gox is progressing with a plan to distribute approximately $9 billion worth of digital assets. Coinglass, a crypto data aggregator, has noted liquidations totaling over $313 million within the past 24 hours, primarily affecting traders who were long on BTC and ETH.
Mt. Gox, once the largest Bitcoin exchange globally, faced insolvency after a substantial portion of its coins were stolen. Despite this setback, the exchange managed to recover most of the lost coins and has been engaged in a protracted bankruptcy process aimed at repaying its former clients. This situation has introduced a level of uncertainty in the market due to the potential selling pressure that could arise if Mt. Gox decides to sell its BTC to reimburse creditors.
In a recent announcement, Mt. Gox disclosed that repayments in BTC and Bitcoin Cash (BCH) will commence from the start of July. The exchange emphasized its commitment to ensuring secure and reliable repayments to creditors, complying with financial regulations in various jurisdictions, and coordinating repayment arrangements with cryptocurrency exchanges. The repayment process will be initiated based on the completion of exchanges and confirmation of necessary information by the Rehabilitation Trustee.
Earlier in May, observations of coin movements signaled preparations for a distribution by Mt. Gox later in the year. Former Mt. Gox CEO Mark Karpelès reassured the community by stating that the coins were being transferred to a different wallet in anticipation of the forthcoming distribution, emphasizing that there were no immediate plans for a bitcoin sale.
As developments unfold in the crypto space, it is essential for market participants to stay informed and monitor the evolving landscape. The impact of Mt. Gox’s distribution of digital assets on the market remains a topic of interest and scrutiny among investors and enthusiasts. Stay tuned for further updates as the situation continues to develop.
