Increased volatility and a drop in the value of Bitcoin to two-month lows are largely due to traders’ concerns about the upcoming payment of compensation to creditors of the collapsed cryptocurrency exchange MtGox, according to analysts from the TradingView platform. It is expected that holders of assets of the bankrupt digital asset exchange will receive about 142,000 BTC (approximately $9 billion) starting in July. Against this background, speculative hodlers of the flagship cryptocurrency began selling assets in the hope of securing profits before the rate significantly drops.
Amid a broader sell-off in the cryptocurrency market, the price of Bitcoin fell to $57,874 at one point.
We were there in 24 hours liquidated long positions worth $54.9 million as the market experiences selling pressure to absorb additional supply.
Alex Thorn, head of research at Galaxy Research, believes that the unlocking of assets from the bankrupt exchange MtGox and their return to users should not put significant pressure on the price of BTC. According to Thorn, of the total declared compensation amount of 141,686 BTC intended for distribution, only 65,000 BTC will be distributed to individual creditors, and another 30,000 BTC will go to the settlement funds of claims and separate bankruptcy.
Source: Bits
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