- Mount Gox, the infamously bankrupt crypto exchange, returns $9 billion worth of Bitcoin to creditors.
- Interest in Bitcoin ETFs has also increased significantly in recent days.
Bitcoins [BTC] The recent price surge has resulted in a wave of optimism in the crypto markets. However, this optimism could be short-lived.
Will Mt.Gox lead to more losses for Bitcoin?
Ten years after a devastating hack, a collapsed Bitcoin exchange is finally returning billions of dollars in cryptocurrency to its users.
Mount Gox, a bankrupt Tokyo exchange that once dominated the Bitcoin market, will begin refunding thousands of users in early July.
The payout totals nearly $9 billion in tokens, a fraction of the 650,000 to 950,000 bitcoins stolen in 2014. At the time, those missing coins represented a much smaller amount, but at today’s prices they would be worth more than $59 billion.
This return comes after a long and difficult bankruptcy process full of delays and legal hurdles. Finally, on July 1, the court-appointed trustee overseeing the case announced that distributions to Mount Gox’s approximately 20,000 creditors would begin.
The refunds will be made in a combination of Bitcoin and Bitcoin cash, an early variant of the original cryptocurrency.
While the long-awaited payout is positive news for users who lost their bitcoins in the hack, it comes at a worrying time for the crypto market.
Last week, prices plummeted to $59,000, marking the second-worst weekly drop of the year. The massive influx of bitcoins from Mount Gox could further dampen the price, causing unrest among some investors.
Not all hope is lost
Even though the Mount Gox dump may affect BTC prices in the short term, institutional investors and crypto whales have not lost interest in BTC. This was evident from the high number of ETF inflows over the past 24 hours.
Bitcoin spot ETFs continued to see inflows on July 1, extending the streak to five consecutive days. Total net inflows for the day were $129 million.
Read Bitcoin’s [BTC] Price forecast 2024-25
Fidelity’s FBTC ETF led the pack with one-day inflows of $65.034 million. Bitwise’s BITB ETF also saw significant inflows, bringing in $41.4022 million on the same day.
At the time of writing, BTC was trading at $62,788.49 and the price was down 0.78% over the past 24 hours. The volume traded was also up 5.5%.
Source: Sosowaarde