Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Bitcoin Cash price under selling pressure as Mt. Gox roils market

Published 2024-07-08, 11:30 a/m
© Reuters
BCH/USD
-

Fears that selling pressure from bankruptcy redemptions from the estate of Mt. Gox will drive down the price of both Bitcoin and Bitcoin Cash seem founded, according to a note from Kaixo Research.

In addition to the roughly $9.5 billion in BTC the former exchange will return to its customers, Mt. Gox will also send back 143,000 BCH, worth around $73 million. This long-awaited development has created uncertainty in the market about how many investors will sell their holdings and through which venues.

Kaixo Research reported that selling pressure on BCH accelerated on Binance and OKX before the official announcement, particularly at the end of Asian opening hours on July 4. Several sell orders were executed on Binance around 9 am UTC as the market awaits the announcement.

The impact on BCH liquidity was evident, as price slippage for a simulated $100,000 sell order reached its highest level in over a month across most exchanges. This indicated worsening liquidity due to insufficient order book depth for large market orders. The highest slippage was observed on Itbit and Bybit. On July 5, BCH slippage rose from 0.2% to 2.8% on Bybit and from 0.3% to 3.5% on Itbit.

"Strong selling pressure related to the Mt. Gox repayment event has significantly impacted BCH liquidity," noted Kaixo Research. The liquidity issues reflect the broader market's reaction to the repayment announcement.

Mt. Gox, once the world’s top crypto exchange, handling over 70% of all Bitcoin transactions in its early years, was forced into bankruptcy in 2014 after a hack resulted in the loss of an estimated 740,000 Bitcoin.

The announcement of repayments has added selling pressure on Bitcoin and the broader crypto market, with Bitcoin plunging to its lowest level in five months. This freefall led to over $580 million in bullish bets being liquidated.

Exchanges approved by the trustee to process repayments include Bitbank, BitGo, Bitstamp, Kraken, and Japanese exchange SBI VC Trade.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.