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Bitcoin quickly fell 1.4% after Tuesday's Gox trustee sent a test trade.
To be clear, the transaction Mt. Gox seems to have been transferring funds from one wallet to another. But this seems to be enough to make investors feel cheated.
At the time of writing, the price of Bitcoin has fallen to $62,968.33. This marked a one-month high, marking a sharp decline after rising above $65,000 earlier today.
So far, the fall hasn't been enough to erase the rally Bitcoin experienced last week. The world's oldest and largest cryptocurrency is trading 10% higher than it was seven days ago, CoinGecko data shows.
Two weeks ago, trading was last seen on the Mt. Gox cold wallet now holds $3 billion of the nearly $9 billion in total bitcoins that will be transferred to lenders. Last month, the trustee confirmed that it would start accepting Bitcoin payments in July, Decrypt reported.
But the Trustee does not handle all of this on his own. Bitstamp, one of five crypto exchanges used to distribute Bitcoin to lenders, said last week that distribution would begin “as soon as possible.”
“Bitstamp has 60 days to distribute tokens according to the agreement with the Matt Gox trustees, although we are of course working to get those investors satisfied as soon as possible,” said the exchange obtained by Robinhood in 2018. A statement shared with Decrypt.
Gox was once the world's largest bitcoin exchange. The Tokyo-based company In 2013, it was estimated to be 70% of the total Bitcoin trading volume. MitGox CEO Mark Karpeles told Reuters in a now-deleted report that the exchange generated between $5 million and $20 million in daily transactions.
In the year Launched in 2010, the site was Physical Magic: a destination for trading trading cards; It's a short version of “Magic: The Gathering Online Exchange” with Matt Gox. But once the exchange started supporting cash for Bitcoin trades, it moved away from business cards for good.
Analysts previously told Decrypt that they think the market is well-positioned to absorb any selling pressure from Gox lenders accepting BTC after a decade of waiting.
“Many lenders are long-term fans of Bitcoin, so Mt. Gox's pressure is overstated,” said Lenox Leigh, head of global business at OKX.
Leigh suggested that the German government's weeks-long sell-off had a more significant impact on the market.
By Friday afternoon, the German government had emptied its Bitcoin wallet.
Chidiri Ndeche also contributed to this report.
Edited by Sebastian Sinclair.
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