- Bitcoin led a crypto market drop amid Mt. Gox bankruptcy redemption reports.
- Whale Alert spotted multiple BTC transfers between unknown wallets.
- Traders will sell off more of BCH than BTC following Mt. Gox’s bankruptcy redemption.
Bitcoin’s price took a tumble yet again the previous day following reports that the defunct crypto exchange Mt. Gox is preparing to reimburse creditors, potentially flooding the market with a large amount of Bitcoin. The market downturn has also affected other cryptocurrencies, with some analysts predicting a disproportionate impact on Bitcoin Cash (BCH).
Notably, the crypto transactions tracker Whale Alert spotted several significant BTC transfers across unidentified wallets suspected to be connected to the Mt. Gox issue. Whale Alert reported separate transactions involving 9,445 BTC, 10,486 BTC, and 9,952 BTC between unknown wallets.
Additionally, the crypto tracker spotted a unique transaction from a dormant wallet containing 119 Bitcoins worth nearly $7 million. The wallet had been dormant for 12.4 years, with the portfolio’s worth at $599 before it went dormant in 2012.
Meanwhile, Presto Labs’ Head of Research, Peter Chung, believes the selling pressure from Mt. Gox redemptions would impact Bitcoin Cash (BCH) more severely than Bitcoin (BTC), as popularly expected. Chung based his analysis on the trading volume of both cryptos, considering the ratio between them.
The market research expert highlighted that Mt. Gox will send back roughly $9.5 billion in BTC to its former customers, in addition to 143,000 BCH, equivalent to nearly $73 million. He explained that the expected refund in BCH represents 24% of the crypto’s $308.8 million daily trading volume, unlike Bitcoin, where the expected refund is only 6%. While explaining that BCH’s daily trading value is 1/50 of BTC, Chung projected a limited selling pressure for BTC as a result of the potential Mt. Gox redemption.
According to the analyst, those who wanted out could have used the bankruptcy claim markets to sell their Bitcoins. On the other hand, he thinks many traders will treat the BCH as an airdrop because the crypto was forked out of Bitcoin three years after Mt. Gox went bankrupt.
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