Analysts, Mt. He believes that Gox’s crypto refund, coupled with the Bitcoin spot ETF rejection, triggered a drop in BTC price. Mt. Bitcoin tokens, which the Gox exchange is expected to return to investors and traders, were purchased for between $100 and $1,000. According to crypto analyst Ekta Mourya, this could trigger a cascading sell-off in Bitcoin.
Mt. Gox is preparing to return lost Bitcoin (BTC) to traders
Cryptocoin. com, the defunct cryptocurrency exchange’s plan to return $8.5 billion in Bitcoin to traders and investors has received final approval from the board of trustees. The recovery plan is now final and binding. In addition, compensation will be paid to creditors following the approval of a Japanese court. Mt. Gox was once the largest Bitcoin exchange in the world. Losing BTC belonging to thousands of customers, the exchange closed in early 2014 and traders have been waiting for their lost funds to be recovered ever since.
The exchange lost 850,000 BTC at the time of closing and is now ready to return 141,686. The Tokyo-based exchange plans to recoup rights holders more than $8.5 billion in Bitcoin assets ($60,000 for each BTC). A Tokyo District Court has now issued a “final and binding” regulation in response to a 2018 petition filed by creditors.
CryptoWhale, a crypto analyst by the pseudonym, believes that recovering lost Bitcoins will trigger a crash in BTC price. Analyst, Mt. He argues that the BTC tokens that Gox plans to return were bought at $1,000 or less:
BTC tokens are likely to start flooding exchanges as creditors’ demands are met. Analyst Ekta Mourya reminds that an increase in Bitcoin balance on exchanges has historically increased the selling pressure on the asset. The analyst makes the following assessment:
The recent rejection of the Bitcoin spot ETF by the Securities and Exchange Commission (SEC) is expected to fuel the bearish trend among traders and investors, with 141,686 BTC recovery confirmed.
Evaluating the BTC price trend, FXStreet analysts predict that BTC will drop to $54,000 when the correction begins.