Bitcoin- the digital gold has had a roller-coaster ride in August with its price swinging to great extremes due to larger global events and other macroeconomic factors.
BTC experienced a decline below $60,000 over the last week following the larger market downfall and the macro-economic situation worsening globally.
Currently, Bitcoin is trading at $59,000 BTC/USDT on Gate.io after dipping to a low of $56,800 this week. Despite this rebound, BTC is trading 2.5% lower than it was the previous day. In less than 24 hours traders had exchanged $73.88 Billion worth of cryptos, utilizing the opportunity.
BTC in the spotlight
It’s not just BTC but the overall cryptocurrency market that is experiencing a slight downturn. The global cryptocurrency market cap dropped by 2% to $2.05 trillion, according to CoinGecko. Back in March, when Bitcoin reached a new all-time high above $73,000, the global market cap was close to surpassing $3 trillion, a level last seen in November 2021.
Over the last month, Mt. Gox has moved a total of 45,516 Bitcoin, valued at around $3.15 billion. The largest transaction of $2.1 billion was transferred to what seems to be a new wallet. However, recent transactions have been directed to the centralized crypto exchange Bitstamp, one of the five firms aiding in redistributing Bitcoin and Bitcoin Cash to Mt. Gox creditors.
Blockchain analytics firm Arkham Intelligence revealed that the trustee conducted two smaller test transactions to Bitstamp before transferring $25 million. Additionally, another Mt. Gox wallet sent $105 million to Bitstamp, bringing the total to $130 million worth of creditors’ funds now held by the exchange. Bitstamp recently assured that repayments would be distributed to creditors “as soon as possible.”
Would Bitcoin reach its zenith in 2024?
Despite the current market hesitancy, some analysts believe Bitcoin could approach its all-time high again before the year ends.
One renowned market analyst noted that since Bitcoin stabilized between $60,000 and $70,000, a range where it has spent almost half the year. He pointed out that BTC has reached the $71,000-$72,000 range at least four times this year, indicating the possibility of seeing these price levels again soon.
For now, investors remain cautious, observed lead traders at BTC ETF brokerage firm. They also mentioned that Bitcoin ETFs ended a 12-day streak of net inflows, attributing this to traders possibly reallocating into new Ethereum ETFs.
Analysts have also highlighted that important economic indicators are expected this week, such as the release of new GDP and PCE data from the Bureau of Economic Analysis. Traders suggest that these potential catalysts, coupled with speculation about Trump making Bitcoin a strategic reserve asset, could propel Bitcoin to a new all-time high.
Mt. Gox – The past and the now
Mt. Gox, once the largest Bitcoin exchange in the world, has a tumultuous history that has left a significant mark on the cryptocurrency landscape. Founded in 2010 by Jed McCaleb and later acquired by Mark Karpeles, Mt. Gox quickly became the go-to platform for Bitcoin trading.
However, the exchange faced multiple security breaches, culminating in a catastrophic loss of 850,000 Bitcoins in early 2014, valued at approximately $450 million at that time. This event led to Mt. Gox declaring bankruptcy and ceasing operations, leaving creditors in a lengthy and complex legal battle to recover their lost funds.
Fast forward to recent developments, and there is a glimmer of hope for Mt. Gox creditors. After years of legal proceedings and investigations, the court-appointed trustee, Nobuaki Kobayashi, has begun the process of redistributing the remaining Bitcoin assets.
These repayments have been long-awaited, and the movement of substantial amounts of BTC into new wallets signifies the trustee’s preparation for the next phase of the repayment process.
The ongoing efforts to return the funds are a testament to the resilience and determination of the cryptocurrency community and the legal entities involved.
Conclusion
As the repayments of Mt Gox continue, it is more than obvious that the grade of impact is not as critical for the price of BTC. Yet, fear is a serious factor to count on when it comes to trading and we reap the Mt. Gox pitfalls to this day. Therefore, it will be interesting to see whether BTC will find newer heights or fall down.
