- BTC failed to hold the $20,000 support level yesterday.
- Potential BTC sell-off by Mt. Gox creditors has strained the crypto market.
- There is no official information regarding the rehabilitation proceedings yet.
BTC failed to keep the $20,000 support yesterday as fears over a BTC sell-off by users of the defunct exchange, Mt. Gox, added to price pressures. Data from TradingView shows that BTC/USD is headed to new six-week lows as it reached $19,766 on Bitstamp.
Furthermore, this weekend’s liquidity worsened the already strained crypto market, which reacted negatively to unconfirmed rumors making the rounds that Mt. Gox funds were due to release to Creditors today.
This comes after the appointed rehabilitation trustee for the Mt. Gox legal saga, Nobuaki Kobayashi, announced on July 6 that he was “preparing to make payments” to creditors. In documentation released at the time, Kobayashi gave “then end of August” as a reference period during which a portion of the initial payments might begin.
There are varying claims regarding the release of the funds to creditors. Some claim that all the funds will be released in one go, while others claim that the funds would be sent piecemeal. Nonetheless, the payouts are set to begin this weekend.
Seeing that the creditors in the payout last had access to their BTC in 2014 when it was trading at around $500, other members of the crypto market fear that the 40X returns would prove to be too enticing to pass up.
With no new official information on the dedicated website covering the rehabilitation proceedings, it is unclear why the sell-off rumors gained so much traction so quickly in the market.