Key Points
- Bitcoin miner capitulation has been just expedited by Mt. Gox’s announcement.
- The exchange announced it would distribute over $9 billion in Bitcoin and Bitcoin Cash. to creditors.
According to DecenTrader’s founder known on X as filbfilb, Bitcoin miner capitulation has been just expedited by Mt. Gox’s recent announcement of returning funds to creditors in Bitcoin and Bitcoin Cash.
The popular crypto trader shared a thread via X in which he explained that the crypto exchange’s move has amplified the Bitcoin miner dumping.
The trader explained in the thread that there has always been a capitulation event post-halvings.
He shared a graph showing the 2020 event when BTC miner reserves went from over 2.5 million BTC in April to about 2.36 million BTC in September.
He also shared a graph, showing what happened back in 2016 post the halving event, and then explained that the current market continues to hold a lot of leverage.
He concluded by telling his followers that this is a high-risk environment short term if traders are holding leverage. He said that a wipe-out exercise could bring great opportunities, and advised everyone to “survive”.
The conclusion is that this is a high-risk environment short term if holding leverage.
A wipe out exercise could bring great opportunities.
As always;
Survive 🫡
— filbfilb (@filbfilb) June 24, 2024
Bitcoin on-chain analyst, Willy Woo has been also addressing this miner capitulation event, saying that Bitcoin’s price will see a recovery after miners exit and the hash rate recovers. He also offered a potential timeline of 1-4 weeks for this to happen.
Mt. Gox will begin distributing recovered BTC and BCH starting July
According to the latest reports, the infamous defunct Japanese crypto exchange will start refunding creditors the recovered Bitcoin and Bitcoin Cash starting in July.
This is an important development regarding the Mt. Gox rehabilitation plan which began following the exchange’s collapse back in 2014 due to a massive hack.
According to court documents and creditor reports, Mt. Gox will distribute the following:
- 142,000 BTC currently valued at approximately $8.67 billion
- 143,000 BCH totaling about $50 million
In September 2023, the trustee of the defunct exchange announced that creditors would be reimbursed with 142,000 Bitcoin, 143,000 Bitcoin Cash, and fiat currency totaling 69 billion Japanese yen (worth $600 million), by a new deadline of October 2024.
The total amount that should be recovered is somewhere around $9.3 billion, fiat included.
The exact distribution schedule will be released, but creditors can expect to receive their share proportionally based on their verified claims.
