Bitcoin Cash Price Declines by 5% as Mt. Gox Creditors Increase Kraken Withdrawals

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The price of Bitcoin Cash declined after the Mt. Gox repayment program commenced. Notably, Mt. Gox transferred 48,641 BTC coins to the Kraken crypto exchange, which distributed them to victims.

【36% of the Mt. Gox Bitcoin has been distributed to the creditors】@cryptoquant_com analyst @JA_Maartun posted that, yesterday, a transaction involving 48,641 BTC was executed from wallets associated with the Mt. Gox Trustee to an address belonging to the Kraken Exchange.… pic.twitter.com/uZCi5a7dmo

— MetaEra (@MetaEraHK) July 17, 2024

Kraken’s CEO David Ripley confirmed the successful transfer of crypto assets back to Mt. Gox creditors through the exchange.

1/ @krakenfx has successfully distributed #Bitcoin and Bitcoin Cash from the @mtgox estate back to creditors.

It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty. pic.twitter.com/ptKexzN4gm

— Dave Ripley (@DavidLRipley) July 23, 2024

Creditors began withdrawing their BTC and BCH tokens from Kraken after the distribution. The massive inflow of tokens into the market exerted significant pressure on Bitcoin Cash’s price, leading to price dips.

Moreover, Mt. Gox sent more BTC tokens to the Bitstamp crypto exchange, increasing market volatility, with BCH declining almost 3% in the past 24 hours.

Mt. Gox Creditors Selling Bitcoin Cash and Bitcoin

Mt. Gox began its creditor repayment scheme in July. The company will distribute these payments through five exchanges, including Kraken and Bitstamp.

Kraken users on Reddit reveal that the payments are proceeding smoothly, and they can withdraw their assets. Mt. Gox’s accountability is commendable and will likely improve the general sentiment in the crypto market.

Arkham data reveals that Bitstamp received 5110 BTC worth $340.1 million in four unique wallet addresses.

UPDATE: MT. GOX MOVING $2.85B BTC

Mt. Gox moved a total of $2.85B BTC to new wallets this morning in order to distribute 5110 BTC ($340.1M) BTC to 4 separate Bitstamp addresses.

Bitstamp is one of the 5 exchanges that the Mt. Gox Trustee is working with to return funds to Mt.… pic.twitter.com/KsKuxMpvZS

— Arkham (@ArkhamIntel) July 23, 2024

According to the update, Mt. Gox moved $2.85 billion worth of Bitcoin to new wallets while distributing 5110 BTC to four Bitstamp addresses. Following this fund movement, Mt. Gox wallet now holds 85,234 BTC worth $5.70 billion.

According to Altinvest.finance, a large amount of Bitcoin is still waiting to be distributed, but the progress is a positive step. Altinvest.finance urged stakeholders to remain vigilant and patient as the process unfolds. 

The financial outfit also warned that price fluctuations will occur during this period.

Additionally, Altinvest.finance foresees renewed discussions on regulatory oversight, confirming the need for frameworks to protect investors and ensure market stability. 

Also, Web3 company MetaEra reveals that Bitcoin’s movement marks the beginning of the actual transfer process. Mt. Gox has transferred 36% of its total asset volume to users. 

Bitcoin Cash’s recent price decline is due to the increased withdrawal activity of Mt. Gox creditors from the Kraken exchange. However, the green candle that formed today hints at a possible recovery for BCH.

BCH Shows Recovery Signal; What Comes Next?

Bitcoin Cash (BCH) suffered a price decline between July 22-23, forming lower lows on the daily chart. The Mt. Gox creditors’ sales must have contributed to this decline.

However, BCH has formed a green candle on the daily chart after finding support at the $362.04 price level. Buyers have re-entered the market, and BCH is attempting to rally above the $376.90 resistance level.

BCH is trading above the median band of the Donchian Channel (DC), indicating a price increase ahead.

The RSI is 47.72, emerging from the neutral zone. A move above 50 could signal that buyers have regained control, and BCH will likely break above the $376.90 in the coming days.

Meanwhile, the Crypto Fear and Greed Index reveals that investor sentiment is still on greed. So, BCH will likely record positive price action in the coming weeks.