The Mt. Gox Bitcoin story began in 2014 and won’t go away, but it turns out that news of the imminent distribution of 140,000 Bitcoins to creditors is fake news, says Eric Wall.
No payment system has been created so far
Eric Wall, one of Mt. Gox’s creditors, denied the news from last week that the Japanese exchange would soon distribute 140,000 Bitcoins to creditors.
According to Wall, Mt. Gox has not yet created the creditors’ repayment system and hasn’t provided an exact date as to when it will launch. Furthermore, he noted the repayment will be made in several instalments and there are no details available on this either.
Wall criticised those who spread the news that, within a few hours, brought further pressure on Bitcoin, whose price has fallen below $20,000.
Mt. Gox bitcoin trustee moves to fast-track payments
In July, the Mt. Gox “rehabilitation” trustee, which holds what is left after the collapse of the Japanese exchange, announced plans to fast-track payouts, asking creditors to choose between Bitcoin, cash or Bitcoin Cash to receive repayment.
The Mt. Gox trustee also said that it would have accepted claims for compensation from victims until August and then a period of review and payout would start. However, it didn’t give specific date or any other specific information with regard to payouts.
In February 2014, Mt. Gox filed for bankruptcy after being hacked and losing most of its funds as 850,000 Bitcoins were reported missing. The firm was able to recover only 200,000 Bitcoins, which have since increased in value significantly, so giving a sort of relief to the creditors, who were able to recover a larger part of their lost investments.
Bitcoin price drops under $20k on Mt. Gox reports and Powell speech
As mentioned, the Bitcoin price fell under $20,000 after the news of BTC distribution was released. Analyst Naeem Aslam said when the BTC price broke below the 50-day simple moving average (SMA) on the daily time scale, bears were much more concerned.
“For traders , the 50-day simple moving average (SMA) is a key level to look at when trying to decipher the direction of the trend in the market. If the price is trading above this average, then bulls are in charge of the market and the chances favour higher highs. When the price drops below this key moving average, though, it’s usually safe to assume that bears have taken control of the market,” Aslam said.
“Bitcoin is trading below its 50-day simple moving average but above its 200-day simple moving average. As a result, BTC bulls are still holding out hope that the recent breach is phoney, and if the price stays over $20,000, there is nothing to stop it from continuing its ascent.”
The Mt. Gox rumours fed into an already febrile market atmosphere, where sentiment had been knocked by the speech of Jerome Powell at the Jackson Hole summit of central bankers. All risk assets sold off in the wake of the Fed chairman’s speech, including bitcoin.
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This article was written for Business 2 Community by Giuseppe Ciccomascolo.
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