Former stock market Mt. As Gox users prepare to get their BTC back, Bitcoin “faces the threat of a new sell-off” in the near future. On top of that, Binance CEO CZ, Mt. Gox denies rumors about BTC influence.
Binance CZ finds Mt Gox fears unnecessary
Former stock market Mt. Speculation about the collapse of Bitcoin arose after Gox announced last week that he would pay his creditors. There was a widespread fear in the crypto community that the returns would push the Bitcoin price down in a free fall. However, there is a counter-argument that long-term Bitcoin holders will not choose to sell their holdings.
Investors panic after Mt Gox news
In February 2014, Mt Gox, one of the largest exchanges at the time, suspended all transactions on the platform. With the latest access update to 141,686 Bitcoin, the crypto community is skeptical about the timing of returns. Crypto phenom Healthy Pockets says its recent miner sales have already taken a toll on the Bitcoin price:
Recently, miners’ sale of just over 10,000 BTC has already affected the price of Bitcoin. The almost 150 thousand BTC sales that followed could have serious consequences for the Bitcoin price.
Also, speculation around the potential Bitcoin collapse is causing FUD among small-scale crypto investors. When asked if there will be a drop in Bitcoin price due to the launch of Mt Gox, Binance CEO CZ said that there will be no crashes.
“No need for extreme panic about Mt Gox Bitcoin”
Meanwhile, several people in the crypto community are vouching that Mt Gox will not cause FUD. Joseph Young, an entrepreneur, said that there is no need for extreme panic about the Mt Gox Bitcoin issue:
There has been a lot of talk about the $3 billion Bitcoin hitting the crypto market. You shouldn’t be too panicky about Mt Gox and the huge BTC that could be poured into the market.
Mt. What happened in Gox?
Mt. Gox was a Bitcoin exchange based in Shibuya, Tokyo, Japan. It entered the market in 2010. As of early 2014, it handled more than 70% of all Bitcoin (BTC) transactions worldwide. It abruptly ceased operations after it was revealed that it was involved in the loss/theft of hundreds of thousands of Bitcoins.
Mt. Gox suspended its operations in February 2014. It completely shut down the stock market and its website. Later, in February of the same year, it started liquidation proceedings. Since then, 200,000 Bitcoins have been tracked.
As you can follow on Kriptokoin.com, Mt.Gox wallet transferred 6,800 BTC to an unknown address in April.
In the latest development above, Mt. Gox fears the prospect of 150,000 BTC being sold on the market as creditors choose how much to receive in cash, Bitcoin and Bitcoin Cash.
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