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Bitcoin Falls Near $65,000 as Mt. Gox Creditors Receive Assets on Kraken
Cryptocurrencies fell Tuesday as Kraken began distributing assets to creditors of defunct exchange Mt. Gox, with potential selling pressure weighing on the market.
Bitcoin {{BTC}} has dropped to $65,500, down nearly 4% in the past 24 hours, while Bitcoin Cash {{BCH}} has fallen more than 7% in the same period.
The crypto reference of the broader market CoinDesk 20 Index fell 3%, with major altcoins Solana {{SOL}}, Ripple’s XRP {{XRP}} and Cardano’s ADA {{ADA}} down 4-5%.
Ether {{ETH}} outperformed most assets, trading mostly flat below $3,500, supported by US-listed exchange-traded funds (ETFs) recording strong trading volumes on their first day.
The price action came as several creditors announced they had received their crypto after a decade of waiting from the estate of Mt. Gox, a former cryptocurrency exchange giant that imploded in 2014 after a hack. begin this month to transfer assets to several crypto exchanges, where users will be able to retrieve their assets over the coming weeks.
The impending distribution of nearly $9 billion worth of BTC and BCH has been a main source of concern For digital asset investors, the question is how much of these assets lenders will sell on the open market to capitalize on the massive price appreciation over the past decade.
Cryptocurrency Prices often reacted News of blockchain transfers related to Mt. Gox has been negative. Earlier today, Bitcoin dropped to nearly $66,000 after Mt. Gox wallets transferred $2.8 billion in assets, including $130 million in BTC to Bitstamp, foreshadowing a distribution to creditors.