Mt. Gox is a former Tokyo-based cryptocurrency exchange that existed between 2010 and 2014. The company collapsed after it suffered a hack in which 850,000 BTC were stolen. Soon after, Mt. Gox filed for bankruptcy and in 2021, reached an agreement with creditors and the Tokyo District Court on the Rehabilitation Plan, a plan which was created in order to compensate creditors for their losses during the hack.
After locating 200,000 BTC, Mt. Gox emailed creditors and asked how they would like to be paid. The resulting answer has left many crypto bulls fearful. Considering that we’re in a bear market, having over $3 billion of Bitcoin hit the market simultaneously could be detrimental. The expected time period for the release is August with many viewing this as an indication that the BTC bottom could soon be here.
While everyone is nervous to see how the market reacts, many economists believe there are a few things that could happen. Firstly, many analysts think BTC will fall below $10,000, secondly, we could see a deeper bear market as BTC tests support levels and experiences mass sell-offs. Lastly, a unique perspective is the fact that ETH could flip BTC. Assuming the bull market returns, the latter seems feasible. Many predict that ‘The Flippening’ could indeed occur especially when factoring in DeFi, NFT applications such as housing transfers, smart contract use cases, and the future growth potential of Ethereum.
Nobauaki Kobayashi, who was appointed as rehabilitation trustee by the Tokyo District Court, liquidated 24,658 BTC on behalf of Mt. Gox in a meeting with creditors during bankruptcy proceedings in 2017. An immediate sell of that amount signaled the peak for the 2017 bull run. While it’s not certain that BTC will take a dive, many predict that it could, especially when considering that the creditors were forced to hold the asset and may be looking to exit their positions come August. However, on the opposite end, others believe the majority will hold their BTC. The BTC in question was purchased between 2010 and 2014, meaning they’re considerably up in their investment, and selling at a two-year low isn’t ideal. Whatever the outcome may be, August is set to be a crucial month for the crypto space.