Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
Mt. Gox dominated the news in the last 24 hours. One analyst claimed most of the Bitcoin repaid by administrators for the collapsed exchange could be sold. Bitcoin fell to $55,200 on news creditors had transferred $2.7 billion from cold wallets to a new wallet. Meanwhile, the South Korean government has launched a new cryptocurrency monitoring system it says will help keep track of “abnormal transactions.”
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Up to 99% of Mt. Gox’s $8.2 billion Bitcoin could be sold: Analyst
Most of the Bitcoin BTC $56,440 being repaid by defunct exchange Mt. Gox will be market-sold, threatening to cause more downside pressure for BTC.
According to finance analyst Jacob King, the Mt. Gox repayments could add $8.2 billion worth of additional selling pressure to Bitcoin’s price.
The analysts said that onchain movements already point to the fact that Mt. Gox’s creditors have started selling, King wrote in a July 4 X post:
“No Bitcoiner will say this out loud, but the majority of the $8.2 Billion in $BTC that is set to be distributed back to ex-clients are going to be sold off.”
The gloomy prediction cames hours after Mt. Gox began repaying its debts in Bitcoin and Bitcoin Cash
BCH $322, the collapsed crypto exchange announced on July 5.
Bitcoin drops to $55,000 after Mt. Gox moves $2.7 billio from cold storage
Bitcoin fell to $55,200 on Coinbase after collapsed Japanese crypto exchange Mt. Gox has transferred 47,229 Bitcoin — worth $2.71 billion at current prices — to a new wallet address in its first major transaction since May.
According to blockchain analytics platform Arkham Intelligence, the exchange transferred the Bitcoin at 12:30 am UTC on July 5 out from “cold storage.”
The movement comes amid the exchange’s scheduled plan to begin repaying creditors this month. A total of $8.5 billion worth of Bitcoin is slated to be paid back to creditors.
Several market commentators voiced concerns over the sheer volume of Bitcoin that could hit the market following Mt. Gox creditors selling their holdings, which have been inaccessible for more than ten years.
However, other analysts worked to allay fears of a massive sell-off, saying the total amount of Bitcoin that stands to be “dumped” on the market is probably closer to a value of around $4.5 billion.
On May 28, Mt. Gox transferred nearly $7.3 billion worth of Bitcoin to another unknown wallet address. The price of Bitcoin dipped as much as 2% afterward.
South Korea launches new crypto monitoring system
South Korea’s Financial Supervisory Service (FSS) has developed a “continuous monitoring system” for suspicious cryptocurrency transactions, which it says will help authorities identify abnormal transactions.
In a July 4 notice, the regulator said it has established a system for “constant monitoring of abnormal transactions,” which will go live on July 19. That’s the same day that South Korea’s Virtual Asset Protection Act goes into effect.
The FSS said major crypto exchanges subject to the law have already established systems that would enable the regulator to weed out suspicious transactions. Those systems reportedly cover 99.9% of the country’s crypto trading volume.
Currently, there are 29 crypto exchanges registered with the FSS, which means they are subject to monitoring under the Virtual Asset User Protection Act.
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