Mt. Gox Repayments Weigh on BTC\'s Price as It Drops Below $61,000

BTC's price dropped to less than $61,000 on Wednesday, erasing its getting from the past few days. It shortly rallied to above $63,000. The sudden drop is mainly

Bitcoin (BTC) dropped to less than $61,000 on Wednesday, erasing its gains from the past few days. It briefly rallied to above $63,000.

The sudden drop is likely linked to the upcoming Mt. Gox repayments, which are set to begin this month and could happen any day now.

“The Mt Gox release is also slated to happen this week,” QCP Capital, a Singapore-based trading firm, said in a note. It highlighted how the lack of knowledge regarding the exact repayment dates is keeping a lid on BTC price.

“This overhang of up to 140,000 BTC should continue to weigh on markets, especially since the exact release schedule is unknown right now.”

Mt. Gox is finally set to repay its creditors, who have been waiting to get their funds back ever since the now-defunct exchange closed its doors in 2014. A decade later, its bankruptcy estate will begin releasing funds to defrauded users.

“The repayments will be made from the beginning of July 2024,” Mt. Gox trustee Nobuaki Kobayashi announced in a statement last month. With that, $15 billion of BTC will witness circulation.

That number is naturally a cause for concern among those holding the asset, pressuring them to sell and book profits before the 140,000 bitcoins hit circulation.

In fact, BTC price took a hit last month over the upcoming Mt. Gox repayments, and the asset is likely to face more resistance as the repayments draw closer.

BTC price registered a 3% loss on Wednesday, and other top altcoins, including ETH and SOL, followed suit, posting similar losses. Memecoin DOGE also dropped.

XRP price remained largely unchanged, while ADA price rose in value, following the adoption of guidelines that will keep the coin compliant with the European Union’s newly launched Markets in Crypto Assets (MiCA) framework.

US-listed BTC ETFs did not help BTC price either. After attracting inflows for five days in a row and promising to continue, the ETFs now recorded net outflows to the tune of $13 million.

The ongoing bitcoin sales by the German government are also not helping matters, with the millions of dollars in bitcoins being moved regularly, preventing the asset from posting any breakout and rally.

However, trends show that the month of July witnesses an average of over 7% gains. That will be an interesting factor, considering how many more are aligning to add resistance to BTC’s upward movement.

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