Bitcoin Price Eases Amidst Mt. Gox-linked Selling

J. D. Vance is odds-on to be the first bitcoiner to enter the Whitehouse. Image: Gage Skidmore.


Bitcoin has come under pressure again as the Mt. Gox custodial estate begins to compensate victims of a 2012 theft that brought the exchange down.

However, the majority of the selloff has faded, and this development was unable to erase gains made following news that crypto advocate JD Vance would be Donald Trump's running mate in the November presidential election.

"Bitcoin's (BTC) value declined today after a large quantity of BTC was transferred from Mt. Gox’s cold wallet. This large transaction has raised concerns among investors for a possible massive liquidation of the assets, contributing to the near-term bearish momentum of the cryptocurrency," says Joseph Dahrieh, Managing Principal at Tickmill.

The price of bitcoin is down 0.50% on the day $64521/BTC, but had been as low as $62446.

Mt. Gox made a long-awaited announcement in June that it would start distributing assets stolen from clients in a 2014 hack. The announcement prompted a BTC selloff at the time, with analysts anticipating an increased supply.

Repayments have been made using bitcoin and bitcoin cash.

Dahrieh says the risks of a large-scale liquidation could continue to cast a shadow on the market in the middle of a volatile period.

The recovery of BTC through the day suggests investors are fading the Mt. Gox-linked selloff, opting to focus on the broader supportive developments.

Cryptocurrency valuations rose following news JD Vance would be Donald Trump’s running mate in the November election.

The odds-on chance of a pro-crypto Vice President raises expectations of a supportive U.S. regulatory environment in the coming years.

Vance is the first bitcoin holder to run for Vice President, forming a pro-crypto ticket alongside the former U.S. president that has boosted the market and reassured the broader industr

Dahrieh says increasing institutional interest and strategic corporate investments suggest a potentially bullish long-term outlook for Bitcoin and crypto in general.

"In this regard, spot Bitcoin ETFs have seen $300 million in inflows, pushing BTC prices close to $65,000 yesterday. BTC ETFs inflows extended the positive trend recorded last week. These large inflows could help maintain the rebound the cryptocurrency is seeing at the moment," he says.

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