Collapsed bitcoin (BTC-USD) exchange Mt. Gox is reportedly beginning to pay back the nearly $9 billion in bitcoin it owes to customers from its 2014 bankruptcy. With the influx of the cryptocurrency into crypto markets, investors are concerned that customers might sell off the coins quickly.
Jared Blikre breaks down Mt. Gox’s bankruptcy agreement and checks in on the overall state of the crypto space as bitcoin sinks to $55,000 today.
For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.
This post was written by Melanie Riehl
Video Transcript
The Bitcoin plunge collapsed.
Exchange Mount Gox, I think I said that right Is beginning to reportedly pay back the nearly $9 billion in Bitcoin and Bitcoin cash it owes to customers from its bankruptcy in 2014, stoking fresh investor fears that the customers might quickly sell the coins.
The finances Jared Bry has more on this Jared Brian.
I’m guessing you’re not a Mount Gox customer, but good news for them.
Over the next 60 to 90 days, they’re going to get repaid.
This was a bankruptcy that happened well.
It was actually a theft, a high that led to a bankruptcy about 10 years ago.
This was a Japanese based exchange.
They lost over 700,000 coins Bitcoin specifically, and now the trustee is set to return about 140,000 to the market.
Now what you’re seeing behind me, this is just one day’s price action.
A lot of dark right on your screen.
Bitcoin down 4% Ethereum, down 6%.
Here’s what happened.
Over the last four days, Bitcoin is down 12.78% and I’ve been showing this year to date chart saying that anything that happens between these two lines here.
This was a price consolidation channel.
Just sideways movement.
It doesn’t matter now that we’ve broken down below.
Well, that does matter.
As you might know, we actually broke below the support level one time.
That was a false breakdown.
Is it another false breakdown?
Looking on those the length that price has travelled Right now it doesn’t look like it, but I guess that is a possibility.
You just need another day’s price action to really confirm this, so we’ll get that over the weekend.
But what does this mean for the rest of the crypto enterprise?
The rest of the crypto universe?
A lot of times, Bitcoin is a leader here.
So we are also seeing Ethereum get down to the bottom of its support range.
But you’ll notice it hasn’t breached it just yet.
Kind of supports the idea that if Bitcoin were to recover very quickly, you can say, OK, that’s another false break down.
But again, that’s not my base case.
Uh, before we go, I do wanna check out crypto stocks this morning.
I’m gonna put on some, uh, early quotes here and you can see lots of downside action.
Hot trading.
7.5% to the downside, Master strategy down 7%.
So just a lot of negative, uh, vibes in the Cryptos sphere today.
All right, well, at least we have the positivity from Jared Blier.
Always Jared.
Thanks so much.
Appreciate it.