Crypto Market Plunges Over $170 Billion Before Mt. Gox Bitcoin Distribution
Cryptocurrencies experienced a sharp decline on Friday with the focus on the distribution of nearly $9 billion to users of the collapsed bitcoin exchange Mt. Gox. At 9:20 a.m. London time, bitcoin’s value dropped over 6% in a 24-hour period, reaching $54,237.18, marking its lowest point since late February, as reported by CoinGecko. Meanwhile, the rival digital token ether also saw a significant decline of around 10% to $2,869.36.
The broader cryptocurrency market witnessed a collective loss of more than $170 billion in total market capitalization over the past day, according to data from CoinGecko. The trustee of the Mt. Gox bankruptcy estate, Nobuaki Kobayashi, announced on Friday that repayments in bitcoin and bitcoin cash had commenced for some creditors through designated cryptocurrency exchanges.
Specific details regarding the amount of funds transferred to these exchanges were not disclosed by the trustee. Kobayashi outlined that the remaining funds would be returned to creditors following the fulfillment of certain conditions, which include verifying registered accounts and finalizing discussions between the trustee and the designated crypto exchanges.
Kobayashi emphasized the ongoing efforts to ensure the safe and secure processing of repayments, advising eligible rehabilitation creditors to exercise patience during this period. Recent blockchain analytics from Arkham Intelligence indicated a movement of a small quantity of bitcoin from wallets linked to Mt. Gox, with the largest transaction being a $24 transfer to the Japanese crypto exchange Bitbank, one of the recipients designated to facilitate repayments.
The cryptocurrency market has been under pressure due to the news of Mt. Gox preparing to distribute approximately $9 billion worth of coins to its users. This influx of coins into the market is anticipated to prompt significant selling activity. Additionally, the German government’s sale of about 3,000 bitcoins, valued at around $175 million at current rates, from a seized stash of 50,000 bitcoins associated with the movie piracy operation Movie2k, as reported by Arkham Intelligence, added further strain on the crypto markets.
Arkham Intelligence’s monitoring of Germany’s bitcoin wallet revealed that the government still retains more than 40,000 bitcoins, with a total worth exceeding $2 billion. The developments surrounding Mt. Gox’s repayments and the German government’s bitcoin sale have contributed to the recent volatility and downward trend in the cryptocurrency market.
