Another significant influx of Bitcoin might soon hit the market as Mt. Gox prepares to continue creditor repayments. The question remains: will 99% of Mt. Gox creditors really sell their Bitcoin?
Test Transactions Initiate the Repayment Process
Mt. Gox is gearing up to repay creditors through the Bitstamp cryptocurrency exchange, as evidenced by recent on-chain fund movements. The address linked to Mt. Gox has executed its first test transactions to Bitstamp cold wallets.
Blockchain intelligence firm Arkham Intelligence flagged these test transactions in a July 22 post on X (formerly Twitter). The firm noted:
“Mt. Gox addresses deposited $1 to 4 separate Bitstamp deposit addresses. Bitstamp is one of five exchanges working with the Mt. Gox Trustee to facilitate creditor repayments… These transfers are likely to represent test transactions.”
More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt. Gox creditors, who have been waiting for over a decade to recover their funds.
Crypto investors are concerned about the potential sell pressure from the Mt. Gox repayments, which could negatively impact Bitcoin’s price.
Also Read: Mt. Gox Creditors Report Brute Force Attacks on Accounts
Will 99% of Creditors Sell Their Bitcoin?
There is speculation that most Mt. Gox creditors might sell their Bitcoin, which has surged in value by over 8,500% since the exchange’s collapse a decade ago. Financial analyst Jacob King shared his perspective in a July 4 post on X:
“99% of those on Mt. Gox are going to sell their coins the moment they get it. Imagine billions worth of Bitcoin all being dumped gradually over the next several weeks. There is no way to spin this to be bullish, or news that could offset this.”
However, a Reddit community poll suggests a different sentiment. According to the poll, 56% of Mt. Gox creditors intend to hold onto their Bitcoin, while only about 20% plan to sell.
