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Price update: recently, the crypto community has been shaken by the news of the movement of a significant amount of Bitcoin by Mt. Gox, one of the first and largest cryptocurrency exchanges ever to exist.
Despite initial fears of potential market volatility, the price of Bitcoin has remained surprisingly stable, staying around $59,000.
Summary
Mt. Gox news: why its movements can change the price of Bitcoin?
Mt. Gox, acronym of “Magic: The Gathering Online Exchange”, was one of the first Bitcoin exchanges, founded in 2010 by Jed McCaleb and later sold to Mark Karpelès. At its peak, the exchange handled about 70% of all Bitcoin transactions worldwide.
However, in 2014, Mt. Gox fell victim to a devastating hacker attack that led to the loss of approximately 850,000 Bitcoin, equivalent to billions of dollars at today’s value. This catastrophe led to the closure of the exchange and a long legal battle for the recovery of funds by the creditors.
Recently, Mt. Gox moved approximately $700 million in Bitcoin, an event that has generated a lot of attention and concern in the cryptocurrency community.
This movement has been interpreted by many as a signal of a possible imminent sale, which could have led to significant bear pressure on the price of Bitcoin. However, contrary to these expectations, the market reacted with surprising composure, with the price of BTC remaining stable at around $59,000.
According to Alex Thorn, head of research at Galaxy Digital, the market should not be overly concerned about this movement of funds. Thorn stated that he expects only a small fraction of the Bitcoin moved, precisely 1,265 BTC, worth over $70 million, to actually be sold on the market.
This forecast is based on the idea that many of the creditors of Mt. Gox might prefer to hold onto their Bitcoin rather than liquidate them immediately, especially in light of the potential for long-term appreciation of the cryptocurrency.
The impact on the price of BTC and the crypto market
The fact that the price of Bitcoin has not dropped significantly despite the movement of such a large amount of BTC indicates a growing maturity of the market. In past years, similar movements would have likely caused a massive wave of sales, resulting in a price collapse. However, the cryptocurrency market seems to have evolved, with a more diversified and sophisticated investor base, less prone to panic and more oriented towards long-term investment strategies.
Furthermore, the trading volume and liquidity of Bitcoin have increased significantly in recent years, making the market less susceptible to extreme movements caused by individual events. This is a positive sign for the stability of Bitcoin and could indicate that the cryptocurrency is increasingly seen as a reliable store of value, rather than a highly speculative asset.
The Future of Mt. Gox
For the creditors of Mt. Gox, the process of recovering funds has been long and arduous. However, with the recent movement of funds, it seems that a conclusion is approaching. It remains to be seen how the creditors will manage the recovered Bitcoin: some might choose to sell, while others might prefer to keep them as a long-term investment.
Regarding Bitcoin, the fact that the market has remained stable despite the movement of $700 million in BTC is an encouraging sign for the future of the criptovaluta. It shows that the market is capable of absorbing large amounts of sales without experiencing drastic crashes, which could further strengthen investors’ confidence in Bitcoin as a safe and valuable asset.
However, it remains to be seen how the market will react if further large quantities of Bitcoin are liquidated in the future. Investors will continue to closely monitor the moves of Mt. Gox and other large cryptocurrency holders, aware that such events can still have a significant impact on the markets.
In conclusion, the recent movement of Bitcoin by Mt. Gox is an event of great significance, but the calm reaction of the market suggests that Bitcoin is becoming increasingly resilient. With the continuous evolution of the cryptocurrency market, it will be interesting to observe how these developments will influence the future of the most famous of cryptocurrencies.