Crypto Market Volatility Surges as Mt. Gox Begins Creditor Repayments

IconCryptoNewsTerminal Staff05 Jul, 2024

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Crypto Market Volatility Surges as Mt. Gox Begins Creditor Repayments

Mt. Gox, the defunct cryptocurrency exchange, has begun repaying its creditors, triggering significant market volatility. According to IntoTheBlock analyst Burak Kesmeci, $97 million worth of long positions were liquidated on major exchanges in the past 10 hours. Simultaneously, $22 million in short positions were also liquidated. This market volatility was further fueled by Mt. Gox transferring 47,288 BTC from a cold wallet. This transaction caused a momentary drop in the price of BTC to $53,485. Notably, this represents one-third of Mt. Gox's BTC holdings dedicated to creditor repayment, leaving uncertainty about the timing of the remaining two-thirds.

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