Mt. Gox Repayments Spark Crypto Market Sell-Off
The cryptocurrency market has taken a hit as Mt. Gox, a defunct bitcoin exchange, began making repayments to its creditors. The move has sparked a sell-off in the market, with bitcoin’s price plummeting to its lowest level in five months.
According to data from CoinGecko, bitcoin’s price slumped nearly 6% in 24 hours to hit $54,500.53, marking the first time it’s traded below the $55,000 level since February 27. Rival token ether also sank around 9% to $2,872.10.
The entire cryptocurrency market has shed more than $170 billion in combined market capitalization in the last 24 hours, according to CoinGecko data.
Mt. Gox’s trustee, Nobuaki Kobayashi, announced on Friday that the exchange had begun making repayments in bitcoin and bitcoin cash to some of its creditors through designated crypto exchanges. However, the trustee did not specify how much money had been transferred to these exchanges.
The repayments are expected to lead to a significant selling action in the market, as creditors look to offload their coins. This has sparked concerns about the potential impact on the market, with some analysts predicting a further decline in prices.
Bitcoin’s price has taken a hit as Mt. Gox begins repayments
The news of the repayments has also been compounded by the German government’s sale of roughly 3,000 bitcoins, worth approximately $175 million, which has added to the selling pressure in the market.
However, not everyone is bearish on the market. Willy Chuang, COO of crypto exchange WOO X, believes that the long-term impact of the repayments may be less severe, as the market gradually absorbs the selling pressure.
Mt. Gox’s repayments have sparked a sell-off in the crypto market
In other news, the UK’s Labour Party has won a landslide victory in the general election, with the party’s leader, Keir Starmer, set to become the next Prime Minister. While the party’s stance on crypto is unclear, Labour has previously expressed support for tokenization and a central bank digital currency.
Keir Starmer is set to become the next UK Prime Minister
As the crypto market continues to navigate the uncertainty surrounding Mt. Gox’s repayments, investors will be keeping a close eye on prices in the coming days.
The crypto market has taken a hit as Mt. Gox begins repayments
