Reason For The Dump: Mt. Gox Will Unlock a Years Worth of BTC at the Start of July 2024

What’s going on with Mt Gox? Is Bitcoin price really going to collapse amid $9Bn BTC distribution? Here’s everything you need to know in one short guide.

The wait is over for Mt. Gox users, July 2024 marks the start of payback for 127,000 creditors burned by the crypto exchange.

The problem is that this repayment could dump $9 billion on the market, absolutely crushing the price of BTC. Mt. Gox: Ending bull runs since 2014.

“The Rehabilitation Trustee will commence the repayments in Bitcoin and Bitcoin Cash in due course to the cryptocurrency exchanges with which the Rehabilitation Trustee has completed the exchange and confirmation of the required information for implementing the repayments.”

However, the Mt. Gox team may push back the deadline for the nth time. At least, ostensibly, nothing will happen for another 2-3 years.

The past 3 times Mt.Gox repayment 'fud' was dropped.

March 6 2023
Nov 22 2023
Jan 6 2024 pic.twitter.com/pEzjR2GPgN

— Pat (@PattaTrades) June 24, 2024

The Long Road to Repayment for Mt. Gox Victims

Back in 2014, the exchange fell apart as unnoticed hacks siphoned off 850,000 BTC.

Creditors have been left hanging, waiting for reimbursement ever since.

Markets are spooked right now because this isn’t a Bitcoin Halving or lost coins—it’s a $9 billion BTC dump.

This flood of Bitcoin adds serious inflation pressure. It’s the first on-chain move from the collapsed exchange in five years.

The doomsday bear case that we at 99Bitcoin can make is that this time, the Mt Gox unlock FUD is real, and people are refusing to believe it can be buck-broken.

Once the first coins are transferred to people, the market could absolutely PANIC—not “months away,” not “two more weeks,” but next week.

It’s something to keep track of because this news might not be priced in at all.

Historical Context and Market Impact of Mt. Gox

The past 3 times Mt.Gox repayment 'fud' was dropped.

March 6 2023
Nov 22 2023
Jan 6 2024 pic.twitter.com/pEzjR2GPgN

— Pat (@PattaTrades) June 24, 2024

Mt. Gox was a giant, handling over 70% of Bitcoin trades in its heyday.

We remember when this was the #1 spot to go for Bitcoin. Basically, it’s Coinbase of yesteryear.

However, massive security breaches from 2011 to 2014 sunk Bitcoin, causing it to lose 850,000 BTC before recovering 202,000 BTC in March 2014. Bitcoin’s trading around $61,000, down 13% from its peak, with the market on edge about what happens when those “Gox coins” hit.

DISCOVER: How to Buy Bitcoin Anonymously Without an ID – No KYC Guide 2024

Final Thoughts: No, This Isn’t Catastrophic

Mt Gox: We’re going to dump $9 billion in #Bitcoin into the market in July.

Bitcoiners:pic.twitter.com/tUhi64bQkX

— The ₿itcoin Therapist (@TheBTCTherapist) June 24, 2024

Despite widespread FUD, it feels like a very average sentiment in crypto right now; the market is mostly bored.

That could change on a dime if many people freak out once the Gox coins get unlocked. Years of delays have fueled cynicism, but now, with just a week to go, those repayments for Mt. Gox might finally be real.

Yet, some silver lining is emerging as many speculate that the sell-off distribution could be significantly lower than first imagined, as investors seem set to receive capital equivalent to their 2014 BTC value under strange Japanese bankruptcy laws.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.