Long-defunct Bitcoin exchange Mt Gox moved billions in Bitcoin (BTC) this week, sending shudders through the market that a sudden surge in sell pressure be could around the corner.
Mt. Gox distribution has been started.
Almost $7 billion worth of #Bitcoin has been moved in the last few hours 👀 pic.twitter.com/0NxzZJJGe3
— Vivek⚡️ (@Vivek4real_) May 28, 2024
BTC was last changing hands in the $68,000s, having dropped back from above $70,000 on Monday.
Mt Gox was the first major Bitcoin exchange, but went bankrupt in 2014 following a major hack.
The fallen exchange owes its creditors 142,000 BTC (worth over $9 billion), which needs to be paid out before 31 October 2024.
Mt. Gox owes creditors 142,000 #Bitcoin ($9.6B).
The repayments will be made in installments, with the deadline set for Oct 31, 2024.
We’ll be tracking all the Bitcoin movements closely at Flow State. Stay updated by subscribing here: https://t.co/BVFbKVqvq8
— Thomas | heyapollo.com (@thomas_fahrer) May 28, 2024
Does It Even Matter If Mt Gox Moves Billions in Bitcoin?
But some commentators played down the risk that these tokens will be dumped onto the market.
X user spoonman, who claims to be a Mt Gox creditor, expects 80% of credits to hold their BTC.
I’m a Mt.Gox creditor and have followed the bankruptcy/civil rehabilitation for 10yrs+ now.
I’d say 80%+ will hold.
I’m selling Bitcoin Cash the minute I receive it, but will hold #Bitcoin.
— spoonman (@spoonmvn) May 28, 2024
Analyst James Van Straten, meanwhile, noted that the market absorded 1 million BTC of sell pressure in five months.
340,000 of this came out of the GBTC ETF. A further 660,000 came from long-term holders. Mt Gox will only be slightly more that 10% of this, and not all creditors will immediately sell.
Just remember the market absorbed roughly 1M #Bitcoin worth of sell pressure in five months.
GBTC = 340k BTC
LTHs = 660k BTCMt Gox. will be around a tenth of that, not everyone will sell. https://t.co/qI3ygaQ1H5 pic.twitter.com/YZ0cSgkbAe
— James Van Straten (@jvs_btc) May 28, 2024
Price downside related to Mt Gox moving billions in Bitcoin might be a great opportunity to buy the dip.
But with Bitcoin currently trading not far below its record highs of nearly $74,000 earlier this year, BTC’s risk-reward might not be that good right now.
Here are some different cryptos that might be the best altcoins to buy now if crypto prices crash.
Pepe (PEPE)
Trading just below it’s all-time highs it printed earlier this week just above $0.000017, Pepe (PEPE) has bullish momentum.
The Ethereum-based meme coin has been outperforming on bets of a new Ethereum meme coin season post ETF approvals.
Its market cap of $6.8 billion suggests it has plenty of room for appreciation, with Dogecoin valued at $24.5 billion.
Buying PEPE could be one of the best ways to express the Ethereum ecosystem growth bet.
Dogecoin (DOGE)
Speaking of Dogecoin (DOGE), the meme coin stalwart is trending higher.
Last at $0.17, its eyeing a recovery back to its 2024 highs above $0.22.
Dogecoin bulls are banking on the meme coin hitting $1 this cycle. So that could mean DOGE stil has gains of nearly 6x in the bank.
PlayDoge (PLAY)
Rather than buying established meme coin names, some traders might to prefer to get into a token early at presale.
While riskier than buying established tokens, meme coin presales can lead to way bigger gains.
One new meme coin that analysts at Cryptonews.com think has a lot of potential is PlayDoge (PLAY).
The meme coin is packed with play-to-earn (P2E) utility and powers a fun, mobile-based game.
Introducing #PlayDoge – the only #P2E Doge companion! 🐶
Inspired by the legacy of #Tamagotchi, feed, train and play with your 2D Doge to earn $PLAY. 💰
Don’t neglect your doge, his life’s on the line 😲💀 #Presale Now Live! pic.twitter.com/qV3WOdRTEo
— PlayDoge (@PlayDogeGame) May 28, 2024
The presale has already raised close to $250,000, despite only just launching.
At a price of just $0.005, PLAY is launching at a modest market cap of under $50 million.
Depending on how its game gains traction, PLAY could be one of the best meme coin plays this cycle.
Sealana (SEAL)
A soon-to-be-launched, fun Solana (SOL) meme coin called Sealana (SEAL) is another presale with big potential.
The loveable, over-weight South Park-themed cartoon Seal character has caught meme coin investors imagination, raising over $3 million in funds.
#Sealana ain’t slowing down anytime soon! 🔥With his companions he’s out here finishing what @realDonaldTrump started! 🦭💪
Send $SOL to clean out the swamp 🏞️ and make #Memecoins great again. 🚀💰
Once the swamp’s clear, it’s Lambos 🚗, Massive Gains 📈and Freedom all the way!!!… pic.twitter.com/vFMEaRZWKW— Sealana (@Sealana_Token) May 27, 2024
Find out why popular presale analyst and YouTuber ClayBro thinks SEAL has at least 10x potential.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
