Almost ten years ago, Mt. Gox, a Tokyo-based Bitcoin exchange, shut down after being hacked, losing a staggering amount of Bitcoin.
Mt. Gox was once the largest Bitcoin exchange in the world, handling around 80% of all Bitcoin transactions. But in 2014, it went bankrupt after losing between 650,000 to 950,000 Bitcoin in a series of hacks. At todays’ prices, those coins would be worth upwards of $58 billion.
Now, after years of legal battles, Mt. Gox is set to return nearly $9 billion worth of Bitcoin to its users — and it has the crypto community on edge.
Many users have been waiting for a decade to reclaim their lost Bitcoin.
Because the value of these coins has surged over 100x since Mt. Gox’s collapse, it’s likely a lot of those users are going to be in a mood to sell in order to finally realize their gains. A mass sell-off like this could drive Bitcoin’s price down significantly.
Adding to the anxiety is a recent move by the German government, which sold approximately 5,000 Bitcoin worth $305.8 million, putting additional pressure on the market.
Historically, such large liquidations from centralized trading platforms tend to drive Bitcoin prices down. This was evident last month when crypto exchange Gemini returned over $2 billion worth of Bitcoin to users, leading to a notable dip in the cryptocurrency’s price.
Bitcoin has already seen a considerable drop from its all time highs earlier this year. After climbing past $70,000 in March, it has plummeted to as low as $60,000 last week.
Our friend Jeffry Turnmire addressed some of Bitcoin’s recent price action in today’s Morning Monster show, noting that while Bitcoin had shown strength recently, a rejection candle indicated potential trouble ahead.
Jeffry expressed some nervousness about a possible larger market correction but remained hopeful for a bullish breakout in July.
The critical question now is: will Bitcoin rally in July as Jeffry anticipates, or will the influx of Bitcoin from Mt. Gox creditors trigger a massive sell-off, pushing prices down further?
Only time will tell if Bitcoin can withstand these pressures or if it will take another dive in the coming days and weeks.
Still, don’t forget the long term view. Jeffry has had his eye on price targets north of $120,000 for a while now — though he’s warned that this major bull run will likely not start until roughly 4-6 months after the halving which took place on April 20, 2024.
— The Prosperity Pub Team
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