Mt. Gox Will Limit Impact On Bitcoin Price: Report

Key Points:

• While not all of the stolen Bitcoin was recovered, only a portion of the initial amount held would be paid, according to Matrixport.
• Being informed is the greatest way to keep ahead of false rumors.
• While the market is falling significantly due to false rumors, buying BTC is very potential.

Bitcoin (BTC) fell 8% in the United States on Wednesday afternoon on suspicions that wallets linked to the collapsed crypto exchange Mt. Gox and the United States government are conducting transactions, according to a report Thursday from crypto-services provider Matrixport.

According to Matrixport, it has examined the possible market impact of the Mt. Gox haul and concluded that such a scenario would have a minimal influence on the BTC price. Yet, investors should be wary of the final allocation of those BTC. Markus Thielen, head of research, stated:

“Since not all of the stolen BTC could be recovered, only a fraction of the original amount held by creditors will be compensated.”

The paper also notes that erroneous rumors may be addressed by updated facts, therefore the tendency is to purchase.

Hence our inclination is to buy any major dip around those headline tape bombs. At 5:40 am SG/HK (or 5:40 pm NY), we received “reports of US government seized BTC being moved false.” Since then, Bitcoin has gone up +3%. The best way to stay ahead of false rumors is to be stay informed.

The Mt. Gox attack resulted in the loss of 850,000 BTC, which were worth $500 million at the time and are now worth $17.8 billion, with only 200,000 recovered.

According to the letter, creditors will get a basic payment with four alternatives for receiving the balance of their assets. Customers may recover 15%-20% of their lost cash by early lump-sum payback, reimburse by bank remittance, repay for a part of crypto claims rehabilitation in bitcoin, or refund through a fund transfer service provider.

The deadline for repayments of $1.7 billion in cash, 141,000 BTC, and another 142,000 BCH as part of a civil rehabilitation plan is September 30.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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