{"id":1721,"date":"2021-11-25T05:38:39","date_gmt":"2021-11-25T05:38:39","guid":{"rendered":"https:\/\/tradersofcrypto.com\/news\/?p=1721"},"modified":"2021-11-25T05:38:39","modified_gmt":"2021-11-25T05:38:39","slug":"the-mt-gox-payout-how-will-it-affect-bitcoin-btc","status":"publish","type":"post","link":"https:\/\/tradersofcrypto.com\/news\/the-mt-gox-payout-how-will-it-affect-bitcoin-btc\/","title":{"rendered":"The Mt. Gox Payout: How Will It Affect Bitcoin (BTC)"},"content":{"rendered":"\n<p>The payout of cash, <a href=\"https:\/\/tradersofcrypto.com\/news\/bear-week-threatens-crypto-gains\/\">Bitcoin (BTC)<\/a> and Bitcoin Cash (BCH) for traders that had their coins on the Mt. Gox exchange back in 2013 is now imminent. The Tokyo-based exchange, which was arguably behind the BTC rally to $1,000, also caused the coin\u2019s first crash.\u00a0<\/p>\n\n\n\n<p>After being taken in custody, the coins were held for years while the Japanese court debated how to compensate the traders. The Mt. Gox coins are held in a known wallet, and reportedly contain around 141,000 BTC.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What is the Worst-Case Scenario<\/strong><\/h3>\n\n\n\n<p>The current agreement reached is that Mt. Gox traders will be paid partially in cash and BTC, based on their exchange balance before Mt. Gox closed. One of the worst scenarios is that the coins will be shed on the market and tank BTC prices.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">When the 150,000+ <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> is soon dumped on the market, <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> will likely tank over 80-90%. <br><br>No amount of Tether printing can stop the carnage from Mt. Gox. <a href=\"https:\/\/t.co\/LAZSktudeu\">pic.twitter.com\/LAZSktudeu<\/a><\/p>&mdash; Mr. Whale (@CryptoWhale) <a href=\"https:\/\/twitter.com\/CryptoWhale\/status\/1460782373667287046?ref_src=twsrc%5Etfw\">November 17, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The BTC market is much more liquid in 2021, and it is not impossible for it to absorb some of the sales. Over the years, this scenario has been rolled out multiple times, including during selling sprees that have allegedly originated with the partial sale of some of the Mt. Gox holdings.&nbsp;<\/p>\n\n\n\n<p>The amount of BTC on the exchange is close to the biggest wallets of Binance or other centralized exchanges.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Exact Number of Coins Established<\/strong><\/h3>\n\n\n\n<p>The BTC held on Mt. Gox since the start of 2014 has remained mostly unmoved ever since. Recently, a more accurate picture of the lost coins emerged.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">When the 150,000+ <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> is soon dumped on the market, <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> will likely tank over 80-90%. <br><br>No amount of Tether printing can stop the carnage from Mt. Gox. <a href=\"https:\/\/t.co\/LAZSktudeu\">pic.twitter.com\/LAZSktudeu<\/a><\/p>&mdash; Mr. Whale (@CryptoWhale) <a href=\"https:\/\/twitter.com\/CryptoWhale\/status\/1460782373667287046?ref_src=twsrc%5Etfw\">November 17, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>In theory, those coins will have an interesting history and a track record that would link back to the Mt. Gox wallet on the blockchain. The blockchain history itself may prove to be valuable, at least to <a href=\"https:\/\/tradersofcrypto.com\/news\/these-highly-active-altcoins-invite-fund-inflows\/\">NFT project<\/a> creators.\u00a0<\/p>\n\n\n\n<p>BitBlocks, for instance, set out to visualize and sell some of the most notorious BTC transactions.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Mt. Gox Flex<br><br>In 2011, Mark Karpeles sent himself 442,000 BTC to prove access to Mt. Gox&#39;s <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> reserves.<br><br>If made today, the payment would&#39;ve been worth over $21 billion.<br><br>This <a href=\"https:\/\/twitter.com\/hashtag\/NFT?src=hash&amp;ref_src=twsrc%5Etfw\">#NFT<\/a> was painted by the <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> block housing that transaction.<br><br>Own blockchain history. <a href=\"https:\/\/t.co\/mBBIziz9mL\">pic.twitter.com\/mBBIziz9mL<\/a><\/p>&mdash; Bit Blocks (@BitBlocksArt) <a href=\"https:\/\/twitter.com\/BitBlocksArt\/status\/1361751208084598786?ref_src=twsrc%5Etfw\">February 16, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The project could also create visualizations for all the funds flowing out of Mt. Gox and into user wallets.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>BTC Still Can&#8217;t Return Above $60K Levels <\/strong><\/h3>\n\n\n\n<p>BTC sank under $60,000 and has established a range under $57,000 in the past week. At there price conditions, the leading coin is open to bearish attacks.&nbsp;<\/p>\n\n\n\n<p>End of November futures expiration may also lead to last-minute pressure from both bulls and bears, attempting to not allow the futures to expire in unfavorable pricing.&nbsp;<\/p>\n\n\n\n<p>BTC also lost its market cap dominance against altcoins, sinking to 41.7%. Trading sentiment has shifted to fear, as the last month of 2021 approaches with unexpected price weakness. The shaky position on ETF approvals also cut into the previous optimism.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can Mt. Gox Traders Continue to Hold<\/strong>\u00a0<\/h3>\n\n\n\n<p>The BTC traded on Mt. Gox has been acquired at prices between $100 and $1,000. Over the years, the Mt. Gox assigned trustee made attempts to liquidate some of the coins and return the proceeds. However, the creditors fought to have their funds returned in actual BTC sent out to new wallets.&nbsp;<\/p>\n\n\n\n<p>Additionally, they also claimed the Bitcoin Cash (BCH) forked in 2017. For that reason, there are strong expectations the creditors will not rush to sell.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Mt.Gox rehabilitation plan will be finalized on Nov. 20 and creditors will be able to take further steps to finally receive their funds.<br><br>You can set an outflow alert for <a href=\"https:\/\/twitter.com\/hashtag\/MtGox?src=hash&amp;ref_src=twsrc%5Etfw\">#MtGox<\/a> rehabilitation wallets here\ud83d\udc47<a href=\"https:\/\/t.co\/Xq17VEBR8d\">https:\/\/t.co\/Xq17VEBR8d<\/a> <a href=\"https:\/\/t.co\/f5rHYFBvRh\">pic.twitter.com\/f5rHYFBvRh<\/a><\/p>&mdash; CryptoQuant.com (@cryptoquant_com) <a href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/1451169004689584130?ref_src=twsrc%5Etfw\">October 21, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>In any case, the known BTC wallet for the exchange trustee will be monitored closely for any movements. Comparably, the Mt. Gox holdings are not even that significant when it comes to physical coin availability.&nbsp;<\/p>\n\n\n\n<p>Since 2013, the supply of BTC has grown from around 12M coins to nearly 19M coins. Miners alone keep a significant balance with no immediate intention to sell. But compared to Mt. Gox creditors, miners may have a real chance to flood the market if they decide to place their coins.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\ud83d\udcc8 <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> Miners&#39; Balance just reached a 1-month high of 1,817,666.640<br><br>Previous 1-month high of 1,817,618.819 was observed on 22 November 2021<br><br>View metric:<a href=\"https:\/\/t.co\/cHhwgaCLee\">https:\/\/t.co\/cHhwgaCLee<\/a> <a href=\"https:\/\/t.co\/GBgy3B8ZLb\">pic.twitter.com\/GBgy3B8ZLb<\/a><\/p>&mdash; glassnode alerts (@glassnodealerts) <a href=\"https:\/\/twitter.com\/glassnodealerts\/status\/1462998278446923776?ref_src=twsrc%5Etfw\">November 23, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>In the past months, however, more and more wallets switch to long-term holding behavior. Spot BTC with little or no trading history and not linked to a KYC account or a known whitelisted wallet is expected to become more valuable.&nbsp;<\/p>\n\n\n\n<p>The expectation that all the BTC would be released exactly on November 22 turned out to be a false fear-based rumor. Initially, the creditors will receive a mix of cash and BTC, and the entire amount will be spread over a few years.<\/p>\n\n\n\n<p>Creditors have not received new communication on their holdings since November 16, and no known social media personalities have shared any receipt of actual BTC from the exchange.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Will Ethereum Displace BTC<\/strong><\/h3>\n\n\n\n<p>ETH has remained more stable over the past days, retaining 19.6% of the entire crypto market capitalization. ETH also managed to remain between $4,100 and $4,300, with some signs its price may make a move against BTC.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a> Dominance , looking fired up\ud83d\udd25 \ud83d\udd25 <a href=\"https:\/\/t.co\/tQPnWLyPHF\">pic.twitter.com\/tQPnWLyPHF<\/a><\/p>&mdash; Sheldon The Sniper (@Sheldon_Sniper) <a href=\"https:\/\/twitter.com\/Sheldon_Sniper\/status\/1463237056092680192?ref_src=twsrc%5Etfw\">November 23, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The Ethereum network is still a staple, with more types of <a href=\"https:\/\/tradersofcrypto.com\/news\/polygon-approaches-demand-levels-a-potential-buying-opportunity\/\">decentralized projects<\/a> still requiring at least some form of record-keeping or computation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The potential payout to Mt. Gox traders sparked fears of rapid selling. The creditors will most likely receive a gradual payout from the defunct exchange.<\/p>\n","protected":false},"author":3,"featured_media":1722,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[42,12,453],"class_list":["post-1721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorised","tag-bch","tag-btc","tag-mt-gox","entry"],"_links":{"self":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts\/1721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/comments?post=1721"}],"version-history":[{"count":0,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts\/1721\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/media\/1722"}],"wp:attachment":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/media?parent=1721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/categories?post=1721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/tags?post=1721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}